SHANGHAI, Sep 16 (SMM) - The stocks of aluminium billet in five major consumption areas rose by 3,300 mt to 148,800 mt on Thursday September 16 from the previous week, an increase of 2.3%.
The increase was mainly contributed by Foshan and Wuxi, with a weekly increase of 6.2% (4,900 mt) and 11.34% (2,400 mt), respectively. The inventories in Changzhou and Nanchang fell by 2,000 mt, respectively, and Huzhou remained unchanged. The aluminium prices experienced wild volatility this week, and the downstream largely took a wait-and-see attitude. Market activities in Guangdong were mostly arrivals of goods, leading to the increase in aluminium billet inventory.
Looking forward, the demand of aluminium extrusion plants were still sluggish according to SMM, and most medium and small plants reported shrinking orders. Meanwhile, news was spreading over the market that downstream producers in Guangdong and Jiangsu were required to implement off-peak production amid power rationing, and the demand of aluminium billet is likely to fall. Nonetheless, a few plants will re-stock ahead of the Mid-Autumn Festival, though the overall demand for restocking was lackluster. As such, the social inventory of aluminium billet is likely to stay unchanged in the following week.