SHANGHAI, Sep 9 (SMM) - The stocks of aluminium billet in five major consumption areas rose by 6,500 mt to 145,500 mt on Thursday September 9 from the previous week, an increase of 4.7%.
The increase was solely contributed by Foshan, with an added amount of 11,600 mt or 17.2% on the week. Other fours markets all recorded decline in inventories. According to SMM, downstream sector was not interest in taking in goods on the back of soaring aluminium prices. Arrivals of aluminium billets in south China exceeded deliveries, and orders at downstream aluminium extrusion companies were also sluggish.
Going forward, the market is likely to be dominated by wait-and-see stance according to downstream aluminium extrusion companies in light of high prices. Some were even more cautious in taking orders, suppressing demand for aluminium billets due to shrinking orders at aluminium extrusion companies. Aluminium billets inventory is likely to rise further in the following week.