SHANGHAI, Apr 22 (SMM) – The outbound quantity of aluminium billet increased 5,700 mt to 62,800 mt last week. Downstream demand warmed up, and the sentiment of receiving goods for rigid demand improved.
SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China decreased 1.5% or 2,500 mt from a week ago to 162,800 mt as of Thursday April 22. Aluminium prices continued to break through high levels, reaching 18,180 yuan/mt today. Although downstream demand improved, it was still mainly on purchasing for rigid demand at low prices, and the fear of high prices still existed. Inventories in Foshan, Wuxi and Changzhou fell by 1,200 mt, 2,800 mt and 2,800 mt respectively.
Aluminium contracts kept fluctuating with strong downstream demand, while the downstream was unwilling to restock. However, the downstream began to accept aluminium prices at 18,000 yuan/mt. Most companies purchased for rigid demand and kept inventories low. It is expected that aluminium billet inventories will also decrease next week compared with this week.
