According to the Shanghai Metals Market, primary aluminium inventories in China witnessed a decrease of 15,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. Therefore, on Thursday, October 27, the inventories totalled 621,000 tonnes, which in comparison with the month’s last Monday, October 24, shrunk by 5,000 tonnes. As of now, the inventories in October dropped by 361,000 tonnes, as recorded in the same period last year.
The local inventory was getting dumped in the warehouse because the imports to Wuxi were as usual, but the market transactions were slow. The Gongyi Railway Station in Henan province has started restoration work from the evening of October 26, which assures the traders that more cargoes will enter the station next week, but the local truck transportation is yet curtailed. A handful of aluminium ingot and billet cargoes were transported to South China for the logistic issue. Demand and supply in the aluminium ingot spot market have both decreased. But the demand outlook in east China has positive hope since the traditional off-season is about to arrive, and it is absolute that the aluminium ingot and billet inventories will rise.
Last week, on October 20, primary aluminium inventories stood at 636,000 tonnes, which slumped across eight major consumption areas to come in at 621,000 tonnes on October 27, Thursday, with a week-on-week decline.
The chart below indicates the current status of primary aluminium inventories across China in more detail:
The aluminium ingot inventories plummeted in Gongyi and Nanhai by 14,000 tonnes to stand at 61,000 tonnes and 146,000 tonnes, respectively. Only in Wuxi, the aluminium inventory has increased by 15,000 tonnes week-on-week, settling at 210,000 tonnes. Chongqing’s ingot inventory fell by 1,000 tonnes from the data of Thursday, October 20, to peg at 1,000 tonnes. In Shanghai, too, aluminium inventory fell by 1,000 tonnes closing at 42,000 tonnes.
In Hangzhou, Linyi and Tianjin, the aluminium ingot inventories refrained from any change staying stagnant at 70,000 tonnes, 17,000 tonnes and 74,000 tonnes.
source https://www.alcircle.com/news/chinas-a00-aluminium-ingot-inventories-fall-15-000-tonnes-w-o-w-due-to-logistic-issues-85963
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