SHANGHAI, Apr 28(SMM) - This is a roundup of China's metals weekly inventory as of April 28.
SMM Weekly Updates on China Aluminium Ingot and Billet Social Inventory in Week Ending Apr 27, 2023
Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 853,000 mt as of April 27, down 53,000 mt from a week ago and 135,000 mt from the same period last year. So far this month, the inventory has dropped by 235,000 mt. The destocking was mainly driven by fewer cargo arrivals. With an increasing share of molten aluminium being cast into intermediate products or sold to downstream plants that are located nearby aluminium smelters, less amount of ingot was shipped to major markets. Despite the upcoming Labour Day holiday, downstream companies in east China and Gongyi generally showed little intention of stocking up amid pessimistic demand outlook. Some downstream enterprises plan to take a longer break for the holiday this year. Although inventory of aluminium ingots is relatively low, its weekly decline has slowed down. Market players should keep a close eye on cargo arrivals during the holiday.
Aluminium billet: The domestic aluminium billet social inventory stood at 142,000 mt as of April 27, down 10,600 mt from a week ago. The decline was largely contributed by Foshan and Wuxi, while stocks in other regions barely changed. The weekly average shipments out of social warehouses in major markets dropped 3,700 mt on a weekly basis to 41,000 mt this week. Despite the upcoming Labour Day holiday, most downstream enterprises barely stocked up as their raw material inventory could sustain production through the week-long holiday. Market players should keep a close eye on cargo arrivals during the holiday.
Zinc Ingot Social Inventory Down 21,600 mt from Monday
SMM data shows that social inventories of zinc ingots across seven major markets in China totalled 114,900 mt as of April 28, down 21,600 mt from Monday April 24 and 21,800 mt lower compared with the prior week. In Shanghai, the slump in zinc prices buoyed the purchasing willingness of downstream buyers in addition to their restocking demand, so the inventory in Shanghai dropped sharply. In Guangdong, the market arrivals sank slightly, but the daily outflow from the warehouses steadied at 1,500 mt, leading to a drastic fall in local inventory. In Tianjin, despite the growing arrivals, downstream demand also improved. Therefore, goods holders were keen on selling, and the market transactions were brisk, allowing the inventory in Tianjin to slip. Overall, the total inventory in Shanghai, Guangdong and Tianjin fell 19,500 mt, and that across seven major markets in China was down by 21,600 mt.
Lead Ingot Inventory may Increase post the Labour Day Holiday under Rising Supply
According to SMM research, as of April 28, the total social inventory of SMM lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin reached 26,100 mt, a decrease of 4,900 mt from April 21 and 3,400 mt from April 24.
According to the research, the supply of primary lead and secondary lead increased steadily, but the inventory of lead ingots, especially the stocks of deliverable brands decreased further approaching the Labour Day holiday as some downstream enterprises had some restocking demand before taking 1-3 days off. However, the lead ingot inventory may increase under the rising supply in light of the holidays taken by downstream enterprises, the stable production of lead smelters and the work resumption plan of some secondary lead smelters.
Pure Nickel Bonded Zone Inventory Stands Flat from Apr 21
As of April 28, bonded zone inventory of nickel stood flat WoW at 4,300 mt. The inventory of nickel briquettes was 1,370 mt, and that of nickel plates was 2,930 mt. SHFE/LME nickel price ratio fell, and the import window remained closed. Some spots were stilled shipped to domestic market as some traders locked in the price ratio, greatly easing the supply tightness of pure nickel in China.
Nickel Ore Inventories at Chinese Ports down 82,000 wmt WoW
As of April 28, the nickel ore inventories at Chinese ports dropped 82,000 wmt from a week earlier to 6.64 million wmt. The total Ni content stood at 52,000 mt. The port inventory of nickel ore across seven major Chinese ports stood at 3.32 million wmt, down 12,000 wmt WoW. The prices of nickel ore rose slightly this week based on the improvement in the downstream companies’ buying interest and the mines’ intention to raise their quotes. Mines in the Philippine will ship spot ore gradually in May. Therefore, the port inventory may maintain an upward track in the near future.
Silicon Metal Stocks Build Up
SHANGHAI, Apr 28 (SMM) – Silicon metal stocks across China’s three major markets stood at 122,000 mt as of April 28, up 3,000 mt from a week ago. Pre-holiday stocking allowed shipments out of social warehouses to rise slightly. Stocks at Tianjin Port fell thanks to fewer arrivals. Stocks at Huangpu port barely changed as inflows and outflows were somehow equal. Inventory in Kunming increased significantly due to massive shipments by silicon metal plants. At present, the operating rate of silicon metal enterprises in Sichuan and Yunnan remains low. However, high supply in north China and poor downstream demand will likely push up social inventory in the future.
