SMM Weekly Updates On China Aluminum Ingot Social Inventory As Of August 31

SHANGHAI, Sep 1 (SMM) – On August 31, 2023, SMM reported that China's social stocks of aluminum ingots was 493,000 mt, up 3,000 mt from August 28 but down 4,000 mt WOW, and 190,000 mt lower than in August 2022, marking a five-year low for this period. On this last trading day of August, cargo arrivals in major consumer regions notably increased over the past three days, leading to a slight accumulation in domestic aluminum ingot stocks. Throughout the week, while aluminum ingot stocks in major consumer regions increased, robust demand and outflows in East China, represented by Wuxi, kept overall domestic aluminum ingot stocks below 500,000 mt. Recent mixed trends in industry inventory data, coupled with a robust upward trajectory in the SHFE aluminum market, have generated both a buying spree and risk-avoidance sentiment downstream. Given the prevailing risk-avoidance sentiment and insights from basic supply-demand analysis, SMM continues to project, as it has since late August, a lean towards mild accumulation in the medium to long-term aluminum ingot inventory.