SHANGHAI, Jul 15 (SMM) - The outbound volume of the aluminium billet rose by 800 mt to 48,300 mt last week, an increase of 1.6%. Aluminium prices fluctuated at high levels, and downstream users were less willing to purchase.
The stocks of aluminium billet in five major consumption areas fell by 3,000 mt to 120,800 mt from the previous week, a slight decrease of 2%. Stocks in Wuxi and Changzhou rose this week, and Changzhou saw an increase of 1,400 mt or 11% on the week. The inventories fell in Foshan, Huzhou, and Nanchang, and the decrease was significant in Foshan and Huzhou.
The overall market trading was flat this week, as aluminium prices stood high amid the bullish factors such as PBOC’s lower required reserve ratios and power rationing in Yunnan. Downstream wait-and-see sentiment increased.
According to SMM survey, aluminium downstream orders is likely to further decline, and the consumption momentum is weak in the off-peak season. The outbound volume of aluminium billet is expected to drop next week, and the inventories may further increase.
