SHANGHAI, Aug 4 (SMM) - SMM aluminium ingot social inventory stood at 678,000 mt as of Thursday August 4, up 7,000 mt from a week ago, and down 54,000 mt the same period last year. The inventory was down 56,000 mt compared with July 4. The inventory in Wuxi dropped to 220,000 mt amid limited arrivals. Gongyi saw a small increase compared with this Monday, but dropped from last Thursday as the arrivals have not yet been fully reflected in the inventory level. (Jushen warehouse was included in the inventory statistics in Gongyi starting from this week) In Foshan and Nanhai, the local inventory stabilised after rising for three weeks in a row. On the whole, low aluminium inventory will underpin aluminium prices, but eyes shall be kept on the future arrivals.
Aluminium billet: SMM aluminium billet social inventory dropped 1,000 mt from Monday August 1 to 116,400 mt, but added 8,800 mt compared with last Thursday. The inventory in Foshan rose 13,400 mt or 20.3% from last Thursday amid concentrated arrivals from Yunnan and sluggish downstream demand. Wuxi saw a weekly growth of 200 mt, and the market shall watch the arrival of billet in transport. On the whole, aluminium prices are struggling for a direction around the 18,000 yuan/mt mark. Upstream production has been relatively stable, hence the supply shows no signs of declining. Aluminium billet inventory is more than likely to rise next week.