SHANGHAI, May 20 (SMM) – The outbound quantity of aluminium billet increased 28,800 mt or 77.8% to 65,800 mt last week. Last week was the Labor Day holiday, so there were fewer shipments in only two trading days. In addition, aluminium prices dropped this week, and the downstream was more willing to purchase.
SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China decreased 15.8% or 16,600 mt from a week ago to 88,600 mt as of Thursday May 20. Stocks in all the five places except Changzhou dropped, among which Wuxi fell the most sharply by 27%, and Foshan fell the most by 7,600 mt. The main reason for this week's aluminuim price correction was that the enthusiasm of receiving goods in downstream increased probably for the fear of the rebound of aluminium prices. The market trading atmosphere was active this week.
At present, the state has a strong willingness to regulate and control. The State Council has a clear attitude towards bulk commodities and the follow-up specific measures will be monitored. It is expected that the trend of aluminium prices will be tangled next week. Downstream will mainly purchase on rigid demand. Under the psychology of purchasing at high prices, the receiving mood is expected to fall, and the wait-and-see mood is dominant. It is more likely that aluminium billet inventories will decrease slightly next week.