Aluminium billet inventories fell 1,200 mt on week

SHANGHAI, Jul 22 (SMM) – The outbound quantity of aluminium billet decreased 1,800 mt or 3.7% to 46,500 mt last week. The downstream was less willingness to restock under the continuous fluctuation of aluminium prices at high.

SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China decreased 0.9% or 1,200 mt from a week ago to 119,600 mt as of Thursday July 22. Stocks in Wuxi and Huzhou rose. Among them, Huzhou area increased the most, with inventories increasing by 3,000 mt or 33%. Stocks in Foshan, Changzhou and Nanchang fell, with Foshan and Nanchang decreasing more.

The overall market trading atmosphere was moderate this week. Due to the heavy rain disaster in Henan, some aluminium plants stopped production, which caused aluminium prices to fluctuate greatly amid improved downstream wait-and-see sentiment, poor receiving mood and tepid market turnover. SMM survey showed that the liquidity of the spot market of aluminium billets is loose at present, and the downstream aluminium profile enterprises purchase mainly for rigid demand, and the daily turnover of the overall market is average. However, due to the blockage of Longhai Line caused by the rainstorm disaster in Henan, there will be less arrivals in Wuxi warehouses, and it is expected that inventories will not pile up next week.