Aluminium billets saw massive inventory accumulation, while downstream transaction was sluggish due to poor demand

In contrast with aluminium ingot inventory, the aluminium billets inventory was hit harder by downstream CNY holidays and has been growing for nearly half a month. According to SMM statistics, the domestic social inventory of aluminium billets on February 1 was 141,200 mt, up 30,500 mt WoW. The inventory is no longer the lowest of the same period in the past four years. The aluminium billet outflows from warehouses were 28,500 mt in the week (Jan 22-Jan 28), down 2,600 mt. As CNY holidays drawing near, the inventory grew rapidly, mainly as downstream extruders gradually slashed or halted their production. Some small and medium-sized enterprises have stopped production, dragging down the demand. The domestic aluminium billets inventory was up 47,000 mt YoY, leading to significant inventory pressure. The inventory in Foshan added 4,400 mt to 24,300 mt, with the arrivals on the weekend up 50% WoW, while outflows from warehouses down 1,700 mt. Inventories in Wuxi stood at 3,900 mt, with outflows from warehouses dipped 300 mt. The inventory in Huzhou and Nanchang also fell, except for Changzhou.