SHANGHAI, Jul 29 (SMM) - The outbound quantity of aluminium billet decreased 7,100 mt or 13.4% to 46,100 mt last week, as downstream purchase was quiet amid the surging aluminium prices.
The stocks of aluminium billet in five major consumption areas increased by 4,200 mt to 103,200 mt from the previous week, a slight increase of 4.2%.
Aluminium stocks rose this week in all areas except for Foshan and Nanchang, and Huzhou saw a significant increase of 4,000 mt or 57% on the week.
Downstream companies mostly held a wait and see stance amid the wide fluctuation of aluminium prices. The worsening pandemic across the country also caused the downstream production cuts or suspension, which dragged down the demand for aluminium billet.
However, the pandemic mainly hindered the logistics of raw materials, and the delivery volume of aluminium billet from north-west China was low. Meanwhile, some billet plants in Yunnan and Guangxi reduced production for lack of power, and the arrivals at the warehouses in south China were low as well.
Therefore, the social inventories of aluminium billet are expected to increase next week.