SMM Weekly Updates On China Aluminium Ingot And Billet Inventories As Of May 25

SHANGHAI, May 25 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 657,000 mt as of May 25, down 49,000 mt from a week ago and 273,000 mt from the same period last year. The weekly decline slowed down significantly, and stocks in different regions diverged. Cargo arrivals in south China fell sharply in the middle of this week and were less than 1,000 mt on Thursday May 25, while cargo outflows from local warehouses picked up slightly, driving down local stocks. Smelters stepped up shipments to east China after local aluminium prices exceeded those in south China. Meanwhile, rapidly expanding spot premiums cooled down transactions in east China, thus the decline in local stocks was relatively slow.
Aluminium billet: The domestic aluminium billet social inventory stood at 141,300 mt as of May 25, down 20,700 mt from a week ago. Smelters have raised the share of non-ingot output this year. Following a period of accumulation after the Labour Day holiday, aluminium billet inventory has begun to fall back. However, the decline has slowed down, and the inventory is basically the same as the end of April and still the highest level compared with the same period of the past three years. SMM sees aluminium billet inventory falling slightly next week and possible output buts by billet plants this month.