SMM Weekly Updates On China Aluminum Ingot Social Inventory As of September 21

SHANGHAI, Sep 22 (SMM) –On September 21, 2023, based on SMM statistics, China's social inventory of aluminum ingots was 522,000 mt, a decrease of 7,000 mt from September 18, but an increase of 3,000 mt from September 14, a decreased by 161,000 mt YoY, maintaining the lowest level for the same period over the past five years. The slight inventory decrease in mid-week was primarily due to a slowdown in goods arrival. There was no significant demand support from downstream pre-holiday stockpiling. The cargo pick-up from warehouses in South and East China even decreased. Inventory conditions varied across regions. In the southern region of Foshan, market activity was limited and cautious, with minimal pre-holiday stockpiling demand. In East China, cross-regional aluminum ingot shipments have somewhat slowed down, leading to a widening price gap between Guangdong and Shanghai. Also, the ongoing open import window has increased the pressure of arrivals in east China with an influx of imported goods. Conversely, the Gongyi region saw significant decline in stocks, primarily due to the impact of previous suspension of shipments to this region after local railway station was flooded with ingots. While shipments to this region have recovered, it takes time for cargoes to arrive. Gongyi will face mounting inventory pressure, unless demand is strong enough to absorb massive cargoes that will arrive soon.