June 16 News:
According to SMM statistics, as of June 16, the inventory of aluminum ingots at major domestic consumption hubs stood at 458,000 mt, a decrease of 2,000 mt from last Thursday and a decrease of 19,000 mt WoW from last Monday. As of mid-June, destocking of aluminum ingots in China slowed significantly this week. Driven by regional price spreads and inter-regional transfers, arrivals in east China's Shanghai, Wuxi, and central China's Gongyi regions increased notably over the weekend. Meanwhile, inventory in south China's Foshan region dropped sharply, while inventory in other domestic regions remained largely stable. SMM believes that in the short term, supported by the overall still low domestic casting ingot production, inventory is expected to continue its destocking trend. However, recent slight increases in shipments from north-west China and inter-regional transfers due to price spreads have exerted noticeable pressure on arrivals in east and central China this week. Coupled with expectations of increased casting ingot production at some aluminum plants, the tight supply of circulating goods may ease. Looking ahead, destocking in China is expected to face slowing pressure in the second half of the month. Close attention will be paid to whether the annual low of 440,000 mt can be successfully broken before the off-season transitions to an inventory buildup trend, thereby further boosting market sentiment.
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