SHANGHAI, Feb 24 (SMM)—Aluminium rod was shipped out of social warehouses in south China on Monday February 22, and shipments increased on Tuesday. But aluminium rod inventories are still rising amid weak downstream demand.
Most of the aluminium processors have yet to return to normal production as some of their workers have not returned to work and due to tepid orders. Some processors that received robust orders operated normally during the Chinese New Year (CNY) holiday.
Aluminium rod social inventories in Guangdong are expected to start to fall in early March.
Processing fees of aluminium rod in south China increased after CNY, and are likely to maintain the upward trend in the near term.