SMM Update on Aluminium Social Inventory as of Mar 2

SHANGHAI, Mar 2 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China's eight major markets stood at 1.269 million mt as of March 2, up 21,000 mt from last Thursday and 149,000 mt higher than the same period last year. Compared to January 19, two days before the Chinese New Year (CNY) holiday, the aluminium ingot social inventory has added 524,000 mt.  The inventory in Gongyi added 10,000 mt with the end of the inflow controls. The recovery of shipment prompted the inventory to hit a record high since 2020. The inventory in Nanhai dipped 3,000 mt on the week because the suppliers were active in making shipment amid low arrivals. However, there are still cargoes in transit, so it remains to be seen whether the decline will sustain.

Aluminium billet: The domestic aluminium billet social inventory stood at 156,200 mt as of March 2, down 24,700 mt compared with a week ago. The aluminium billet inventory has dropped for four straight weeks as downstream processing enterprises received more orders in the traditional high season and ran at higher capacity. Since the molten aluminium supply in south-west China was scaled down, and some aluminium billet producers in north-west China cut or suspended their production, the overall aluminium billet supply will be tight in the short term. SMM forecasts that the inventory will keep falling next week.