SHANGHAI, Aug 19 (SMM) - The stocks of aluminium billet in five major consumption areas increased by 13,100 mt to 130,600 mt on Thursday August 19 from the previous week, an increase of 11.1%.
Among them, only inventories in Nanchang fell on the week, while that in Huzhou was basically flat. Foshan saw the greatest increase of 11,000 mt or 20.56% on the week, followed by Wuxi with a rising volume of 2100 mt or 10.40%.
SMM surveyed showed that aluminium billet arrivals in south China were comparatively ample, while orders at downstream aluminium extrusion companies were not satisfactory. What’s worse, aluminium prices surged to its 13-year high, suppressing buyers interest in purchasing.
The outbound quantity of aluminium billet climbed 4,500 mt or 10.9% to 45,700 mt on Monday August 16 from a week ago, which remained low as downstream purchase was mostly driven by rigid demand amid the surging aluminium prices within the week (August 9-15).
SMM believes that aluminium billet inventories is likely to fall slightly in the following week as downstream companies reported poor order book and arrivals are expected to decrease amid detained inventories in Xinjiang.