SMM Aluminium Ingot and Billet Social Inventories as of February 16

SHANGHAI, Feb 16 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets totalled 1.22 million mt as of February 16, up 26,000 mt from a week ago and 177,000 mt from a year ago. Since January 19, the second day before the CNY holiday, the social inventory has added 472,000 mt. Nevertheless, it’s worth noting that the week-on-week growth has slowed down significantly and the inventory even dwindled 2,000 mt from February 13, which could be viewed as an imminent turning point in the seasonal accumulation cycle. The inventory increase in the third week after this year’s CNY holiday was considerably smaller than in years past. Considering that aluminium smelters in Yunnan are still at risk of production curtailment due to local power shortages, the social inventory should witness only mild increase in the future.

Aluminium billet: The domestic aluminium billet social inventory stood at 202,300 mt as of February 16, down 12,100 mt compared with a week ago. This marked two consecutive weeks of decline after ending the upward trend earlier. Massive cargo outflows from warehouses drove inventories across each of the five major markets to fall. Aluminium billet production has basically returned to normal levels, and enormous amounts of billets flooded into east China market, leading to chaotic quotations. The demand for aluminium billets picked up, especially driven by construction aluminium extruders, whose orders have recovered significantly. It is expected that the inventories will maintain a slight drop next week.