SHANGHAI, Oct. 11 (SMM) – SMM’s most recent survey shows about 60% of the 24 surveyed aluminum extrusion producers reported inventories of finished goods were up in September MoM, 20% saw little changes and the rest posted decreased inventories.
Traffic congestion from toll-free holiday policy during the 2012 Chinese Mid-Autumn and National Day holidays has somewhat delayed delivery of aluminum extrusion. Besides, some buyers dropped orders due to falling prices after the holidays, also contributing to higher inventories.
Aluminum extrusion distributors have generally built up no stocks due to sluggish end-user consumption. Orders from distributors may continue to decrease as they don’t expect consumption to pick up in 4Q, and this will push up aluminum extrusion inventories further.