Aluminium Ingot Social Inventories in China Extend Seasonal Destocking

SHANGHAI, Mar 23 (SMM) – The aluminium ingot social inventories across China’s eight major markets stood at 1.13 million mt as of March 23, down 85,000 mt from a week ago and 47,000 mt from Monday March 20. The figure, albeit up 85,000 mt from the same period last year, has fallen 143,000 mt from the peak recorded in early March. Stocks across three major markets dropped sharply, led by south China, where fewer cargoes arrived following output cuts by smelters earlier while demand recovered. East China saw smooth cargo outflows from warehouses, while trades in Gongyi, Henan province were driven by downstream rigid demand. The destocking was primarily driven by limited arrivals, even though shipments from warehouses picked up. The pace of destocking deserves close attention.