SHANGHAI, Oct 8 (SMM) - This is a roundup of China's metals weekly inventory as of October 8.

Aluminium Social Inventories Rose 47,000 mt during the National Day Holiday

SMM data showed that China's social inventories of aluminium across eight consumption areas rose 47,000 mt during the National Day holiday to 862,000 mt as of October 8. The inventories rose across China. The market shall watch the impact to goods arrivals after Sanmenxia Road is unblocked.

Aluminium Billet Inventories Up 19,500 mt on Week

The stocks of aluminium billet in five major consumption areas rose by 19,500 mt to 177,000 mt on Friday October 8 from the previous week, an increase of 12%.

The inventory in Foshan rose 9,200 mt or 11%, contributing most of the overall increases. The inventories in Nanchang (3,500 mt or 17%) and Huzhou (3,000 mt or 23%) also climbed significantly. The increase in aluminium billet inventory is mainly due to falling demand amid suspended production for the National Day holiday.  

Going forward, the demand from downstream aluminium extruders were still less inspiring according to SMM. And the power rationing policy in Guangdong, Jiangsu, and Hunan remains unchanged, leading to modest transactions in the spot market. As such, the total social inventory of aluminium billet will continued to rise.

Zinc Social Inventories Up 14,000 mt on Week

Total zinc inventories across seven Chinese markets stood at 133,800 mt as of October 8, up 14,000 mt from September 30 and 2,500 mt from September 27.

The inventory in Shanghai added significantly amid normal arrivals during the National Day holiday and shrinking downstream demand. While Guangdong saw limited increase in the inventory due to less-than-expected arrivals from Guangxi. The inventory in Tianjin only increased slightly due to a small amount of arrivals.

In general, the inventories in Shanghai, Guangdong and Tianjin rose 9,800 mt, and the inventories across seven Chinese markets increased 14,000 mt.

Copper Inventory across China’s Major Trading Markets Increased by over 20,000 mt After the National Day Holiday

As of October 8, the copper inventory across China’s major trading markets increased by 20,900 mt from September 30 to 111,000 mt. Inventories increased in each of the major trading markets, with Shanghai (+10,900 mt) and Guangdong (+6,400 mt) contributing most of the overall growth. The power rationing continued in many regions during the National Day holiday, affecting both upstream smelters and downstream processing companies. The inventory increase on the first day after the National Day this year is smaller than the increase of 23,000 mt in the same period of previous years, indicating that the impact of power rationing on supply is slightly greater than the impact on demand. The recent inflows of imported copper are limited. Downstream demand will recover slightly as power rationing in some areas has eased. Therefore, SMM expects that the copper inventory will drop slightly next week.

Copper Stocks in Domestic Bonded Warehouses Little Changed After the National Day Holiday

 According to SMM statistics, as of October 8, the copper stocks in domestic bonded warehouses were little changed from September 30 at 251,100 mt, including 225,600 mt at the Shanghai Bonded Zone, and 25,500 mt at the Guangdong Bonded Zone. The operations of bonded warehouses were suspended during the National Day holiday, which explained the little change in the inventory. High import profit has driven demand for customs clearance. Inventory in the bonded area will continue to fall after warehouses resume operations.

Lead Ingot Social Inventory Down 600 mt From Sep 30

The social inventory of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased about 600 mt from September 30 and fell 10,300 mt from September 27 to 205,600 mt as of October 8.

The production in both supply and demand sides was affected by the extended power rationing. The secondary lead smelters that reduced or suspended production before the National Day holiday have not resumed production yet. The primary lead brands in Hunan will start the routine maintenance. The supply will shrink more significantly. The downstream companies mostly took the holidays for 1-3 days. The social inventory of lead ingots continued to fall after the holiday, but the decrease slowed down. The SHFE 2110 lead contract will be delivered next week. The in-plant stocks of primary lead increased during the holiday, and the stocks may be transferred to the delivery warehouses.

Nickel Plate Inventory in the Bonded Zone Rose Slightly by 400 mt

The warehousing and shipment operations basically stopped in the bonded zone during the National Day holiday, with only a small amount of arrivals of nickel plate.

The domestic demand is expected to pick up next week amid resumed production among nickel sulphate and stainless steel companies. The SHFE/LME price ration is likely to stay unchanged from the current level in the short term, and the import and export window will remain open.

Silicon Metal Social Inventory Shrank 4,000 mt during Holiday

The social inventory of silicon metal across Huangpu port, Kunming city and Tianjin port shrank 4,000 mt from September 30 to 55,000 mt as of Friday October 8.

The inventory declined mainly in Kunming. The arrivals at the warehouses in Kunming declined during the National Day holiday, and some traders advanced the deliveries to the ports to avoid the transportation period of the biodiversity conference in late October in Kunming.

During the holidays, the Huangpu Port had a large amount of inbound and outbound shipments, as most of the goods arriving at the warehouse were sent to the ports soon, while the inbound and outbound shipments at Tianjin Port were relatively thinner, and the inventory increased slightly.

The social inventory of silicon is expected to increase slightly next week.