SHANGHAI, Dec. 11 (SMM) – SMM’s latest survey of domestic aluminum plate, sheet, strip and foil producers found that 60% reported little changes in raw material inventories in November, 20% saw an increase in raw material inventories and the remaining 20% posted a decline.
Aluminum processors generally pay on a 45 or 60-day basis or pay by acceptance for over 70% of payable due to tighter credit conditions this year, depressing raw material purchase. Besides, thin orders also deter producers from lending aggressively from banks.
Aluminum plate, sheet, strip and foil producers, who used to increase semi-finished goods inventories to meet the demand from end-users, are now buying less raw material and trying to consume semi-finished goods. Raw material inventories are the lowest at the moment, so further declines are almost impossible.