SHANGHAI, Feb. 13 (SMM) -- According to a recent SMM survey, raw material and finished product inventories held by aluminum plate, sheet, strip and foil producers grew further in January. Raw material inventories held by producers accounted for 36.66% of their monthly output, up 12.79% MoM, while their finished product inventories accounted for 48.07% of their monthly output, up 6.63% MoM.
Most aluminum plate, sheet, strip and foil producers were pessimistic toward short-term aluminum prices after the Chinese New Year holiday, so they were cautious toward purchases, while a small number of producers with sufficient cash flows believe aluminum prices have been low, thus actively buying goods. Among the surveyed producers, 5 producers built large amounts of raw material inventories, and their inventories grew by more than 10,000 mt from December, helping drive up the proportion of raw material inventories to monthly output in January.
Finished product inventories at producers have fallen continuously after they began destocking in 2H 2011, but inventories returned to an upward track in January, with the proportion of finished product inventories to monthly output reaching 48.07%, up 6.63% from December. SMM survey revealed that orders from many end-users were arranged to be shipped after the Chinese New Year holiday due to the Chinese New Year passenger traffic. SMM predicts the proportion of finished product inventories to monthly output will decline in February after recent aggressive shipments.