Aluminium billet inventories rebounded 6,900 mt from last Wednesday

[SMM analysis: The high abroad and low domestic aluminium prices drove the export volume of domestic unwrought aluminium and aluminium semis increasing significantly YoY in March] Since August 2021, China's unwrought aluminium and aluminium semis exports have increased significantly YoY, and reached a record high in the first quarter of this year. According to the short-term forecast, aluminium prices at home and abroad will fell in April, but the pattern of high abroad aluminium prices and low domestic aluminium prices will remain, and the domestic aluminium exports will remain high. However, since March, the domestic pandemic interfered with the operation and transportation of domestic aluminium processing enterprises, and ports in Shanghai and other regions were severely blocked.

Aluminium prices retreated 25% as of October 29, the biggest of correction in a week since 10 years ago. Its decline slowed in early November. The most-traded SHFE aluminium contract stood at 20095 yuan/mt today.

SMM copper cathode inventories across major regions in China fell by 2,100 mt from last Friday to 156,300 mt as of Monday July 26.

SHFE nonferrous metals all went up today, amid the dovish statement by the European Central Bank president, the high US jobless claims, and the high July PMI in Eurozone.

Shanghai base metals all cruised higher on Friday morning after the head of the Federal Reserve told Congress he saw no need to rush the shift towards tighter post-pandemic monetary policy. Meanwhile, their counterparts on the LME mostly cruised lower.

Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, decreased 18,000 mt from last Thursday to 858,000 mt as of July 8.

Shanghai base metals were mostly higher on Monday morning as investors digested a better-than-expected US jobs report. Meanwhile, their counterparts on the LME fell for the most part.

Shanghai base metals mostly cruised lower on Tuesday morning despite gains overnight on Wall Street that saw the S&P 500 and Nasdaq Composite touching fresh record closing highs. Meanwhile, their counterparts on the LME traded mixed.

SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China increased 14% or 12,400 mt from a week ago to 100,700 mt as of Thursday June 17.

Shipments of aluminium billet out of warehouses fell 29,700 mt or 44% on the week to 37,000 mt as the Labour Day holiday shortened the number of trading days.