SHANGHAI, Oct 8 (SMM) - 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.