SHANGHAI, Aug 12 (SMM) - The stocks of aluminium billet in five major consumption areas increased by 14,400 mt to 117,600 mt on Thursday August 12 from the previous week, an increase of 14%. Among them, inventories in Foshan saw the greatest increase of 7500 mt or 16% on the week, while the growth rate in Wuxi was the highest of 18% (3100 mt) on a weekly basis.
The outbound quantity of aluminium billet decreased 4,900 mt or 10.6% to 41,200 mt on Monday August 6 from a week ago, as downstream purchase was quiet amid the surging aluminium prices.
According to SMM, the order book at downstream aluminium profile companies were generally sluggish as end-market was cautious about buying. The number at some companies with previously abundant orders even reduced by half, depressing buying of raw materials.
SMM estimated that demand for aluminium billet from downstream companies is likely to slide down, while supply will be improved due to eased transportation disruption from the COVID pandemic. Therefore, re-stocking is highly possible next week.