Xinjiang Shipping Capacity Shortage Leads to Unexpectedly Low Post-Holiday Aluminum Inventory, Backlog Exceeds 50,000 Tons

Publicado: Oct 9, 2024 18:07
According to SMM's research, the shortage in arrivals and the poor shipment situation in Xinjiang are the main reasons for the inventory accumulation after the holiday being significantly lower than expected. After October every year, Xinjiang is prone to a shortage of shipping capacity, and shipments can only be made with small freight trains, otherwise it will be difficult to obtain approval. This year, with the basic completion of railway transportation tasks and the increase in coal transportation recently, Xinjiang's shipping capacity is slightly insufficient, leading to poor shipment and backlog at stations. This situation has a relatively significant impact compared with previous years, and it is not known when the situation will improve. It is said that some aluminum plants have begun to consider road transportation as an alternative. Based on daily production estimates, SMM estimates that the current total backlog has exceeded 50,000 tons, of which more than 20,000 tons of aluminum ingots are affected.

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