SHANGHAI, Nov 4 (SMM) - The stocks of aluminium billet in five major consumption areas dropped 24,500 mt to 138,300 mt on November 4 from a week ago, a decrease of 15.21%. And the inventory has been falling for three straight weeks.
The decline was still mainly contributed by Foshan, whose inventory dropped 22,300 mt or 27.33% on the week, followed by Nanchang as its inventory declined 3,000 mt or 14.29%. The inventory in Changzhou added 1,500 mt or 8.82% from a week ago.
As far as SMM understands, the arrivals of aluminium billet in Foshan has been at a low level, and the downstream was more active in purchasing amid falling aluminium prices. While in Guangdong, the power rationing has eased, which created more demand for raw materials among conversion plants. While the inventory increase in Wuxi was a result of lingering power rationing in Jiangsu, as the local demand was sluggish on the requirement of orderly use of electricity.
Going forward, the orders at aluminium extruders have been moderate according to SMM research. Therefore, the aluminium billet inventory is likely to keep falling in the following week.
