SHANGHAI, Jan. 16 (SMM) – SMM’s latest survey of domestic aluminum plate, sheet, strip and foil producers reveals that half of the surveyed producers reported an increase in finished goods inventories in December from last month, 30% posted a decline and the remaining 20% saw no changes.
Some producers increased inventories of finished goods ahead of the upcoming Chinese New Year in order to meet demand from clients after the holiday. Besides, recent heavy rains and snows have hampered shipments, causing inventories to grow at producers. Hence, 50% producers reported an increase in finished goods inventories.
Many producers have secured new loans from banks at the beginning of the year, but cash flows remain tight at most producers. In response, many producers are still active in reducing finished goods inventories