Aluminium Ingot Destocking Slows Down Considerably

SHANGHAI, Mar 27 (SMM) – The aluminium ingot social inventories across China’s eight major markets stood at 1.11 million mt as of March 27. The figure, albeit up 55,000 mt from the same period last year, fell 18,000 mt from last Thursday March 23 and 161,000 mt from early March. The weekly decline has slowed down. Wuxi and south China reported bigger inventory drop than in Gongyi. High aluminium prices suppressed trades in the second half of last week and traders were cautious about buying after delivery of long-term orders, causing weekly shipments out of warehouses in major markets to drop 11,300 mt week-to-week to around 150,000 mt last week. With downstream operating rates continuing to recover, the destocking should be extended.