Aluminium Billet Inventories Fell to 99,000 mt on week

SHANGHAI, Jul 29 (SMM) - The outbound quantity of aluminium billet increased 6,700 mt or 14.4% to 53,200 mt last week, as downstream purchases rebounded at lower aluminium prices.

The stocks of aluminium billet in five major consumption areas fell by 20,600 mt to 99,000 mt from the previous week, a significant decrease of 17.2%.

Stocks declined in all five areas. Inventories in Huzhou fell sharply by 5,000 mt or 41%, and Changzhou saw a large decrease of 4,600 mt or 32.9%, mainly due to the high-speed railways blockage after the floods in Henan. The blockage of Longhai Line seriously impeded the transportation of the cargoes from north-west regions to east China.

According to SMM survey, the impact of the Henan floods has weakened, and the arrivals in east China will basically recover to normal next week. Downstream aluminium extrusion enterprises will maintain the purchase on rigid demand. The inventories of aluminium billet is expected to stand largely unchanged next week.