SHANGHAI, Feb 8 (SMM)—Trades in the mainstream aluminium billet markets were subdued before CNY. According to SMM survey, most of the small and medium-sized aluminium extrusion producers have closed for CNY, while the remaining showed little interest in stockpiling amid directionless aluminium prices. SMM data showed that aluminium billet outflows from warehouses across the country decreased week by week in the one month before CNY and also fell from same period last year, and inventory increased significantly.
Weekly outflows before 2021 CNY were lower than the same period last year, with a year-on-year decline of 6% in the fourth week before CNY, a year-on-year decline of 12% in the third week before CNY, and year-on-year decline of 20% in the second week before CNY.
Inventories before 2021 CNY were much higher than the same period last year, with a year-on-year increase of 63% in the fourth week before CNY, a year-on-year increase of 65% in the third week before CNY, and year-on-year increase of 89% in the second week before CNY.
Last week is the last complete trading week before CNY, which saw muted trading sentiment among sellers and buyers. Although the entry of bulls lifted aluminium prices, demand was weak. Aluminium billet outflows from warehouses are expected to decline this week.