SMM China Aluminium Ingot and Billet Social Inventories as of September 29

SHANGHAI, Sep 29 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets totalled 619,000 mt as of September 29, a drop of 47,000 mt from a week ago and 33,000 mt from this Monday September 26. The figure was also 198,000 mt lower than a year ago and 57,000 mt less than that at the end of August. The social inventory declined for two consecutive weeks and hit a four-year low thanks to downstream stockpiling ahead of National Day holiday. Wuxi and Gongyi led the decline, with both regions recording a drop of roughly 20,000 mt when compared with last Thursday. Inventories across Shanghai, Foshan, Hangzhou and other regions declined to varying degrees. In addition to pre-holiday stocking activities, the pandemic-induced transportation obstacles in Xinjiang also contributed to the destocking process. Market players shall closely watch cargo arrivals during the National Day holiday and inflows of imported aluminium ingots. 

Aluminium billet: This domestic aluminium billet social inventory dropped 26,000 mt week-on-week to 80,100 mt as of September 29. The inventory in Foshan extended the downward trend, with a decline of 14,100 mt or 21.53%, due to falling shipments from Yunnan and Xinjiang. The inventories also fell across Wuxi (-4,200 mt), Changzhou (-1,400 mt), Huzhou (-6,000 mt) and Nanchang (-300 mt) as the pandemic disrupted shipments from Xinjiang while the upcoming holiday and weak aluminium prices drove downstream buyers to stock up.