Primary aluminium inventories fall by 61,000t as downstream sector increases purchase before Chinese National Holiday

Primary aluminium inventories in China have declined by 61,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants, to stand at 655,000 tonnes, as of Wednesday, September 30, according to the Shanghai Metals Market. This sharp fall could be attributed to the increase in purchases by the downstream sector before the week-long Chinese National Holiday starting from October 1, 2020.

On last Thursday, September 24, China’s primary aluminium inventories stood at 716,000 tonnes, decreasing by 24,000 tonnes from the previous week.

The chart below indicates the current status of primary aluminium inventories across China in more details:

In Wuxi, primary aluminium inventories have declined by 30,000 tonnes on September 30 to stand at 206,000 tonnes, while that in Hangzhou and Gongyi have plunged by 14,000 tonnes and 11,000 tonnes to come in at 58,000 tonnes and 56,000 tonnes, respectively. Primary aluminium inventories in Shanghai, Tianjin, and Linyi have decreased by 7,000 tonnes, 2,000 tonnes, and 1,000 tonnes, respectively, to hover at 115,000 tonnes, 45,000 tonnes, and 5,000 tonnes.

In Nanhai, however, the inventories have built up 4,000 tonnes over the week to stand at 167,000 tonnes, while that in Chongqing remained unchanged at 3,000 tonnes, found SMM.

Despite the significant decline in primary aluminium inventories, A00 aluminium ingot price has recorded a plunge of RMB 50 per tonne to stand at RMB 14,680 per tonne, as of Wednesday, September 30.

source https://www.alcircle.com/news/primary-aluminium-inventories-fall-by-61-000t-as-downstream-sector-increases-purchase-before-chinese-national-holiday-59204