SMM Weekly Updates On China Aluminium Ingot And Billet Social Inventories As Of May 18

SHANGHAI, May 18 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 706,000 mt as of May 18, down 81,000 mt from a week ago and 259,000 mt from the same period last year. The inventories maintain a downward trend and remain at a low level. Judging from cargoes in transit and share of ingot output at smelters, the social inventory is on track to fall below 700,000 mt soon. However, aluminium ingot inventory will present less significance for reference as the proportion of non-ingot output at smelters is on the rise. Downstream demand was relatively poor.

Aluminium billet: The domestic aluminium billet social inventory stood at 162,000 mt as of May 18, down 6,600 mt from a week ago. Downstream purchases picked up after aluminium prices rebounded. Billet conversion margins were lowered amid rising aluminium prices, and market transactions improved noticeably. Billet production remains high amid growing molten aluminium supply, and downstream industry is entering the off-season, putting social inventory at risks of growing further. The current inventory is significantly higher than in the same period of previous years. The inventory is expected to hover around the current level next week.