SHANGHAI, Nov 24 (SMM) – Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets hit a new low of 518,000 mt as of November 24, a drop of 29,000 mt from a week ago. The figure was also 96,000 mt lower than a month ago and 500,000 mt less than the same period last year. The inventory in Wuxi fell 23,000 mt on a weekly basis to a new low of 119,000 mt as fewer cargoes arrived, and this trend will be maintained next week. Shipments to Gongyi have been restored, but the amount of cargoes in transit was at a medium level. Considering that the production of some downstream enterprises in Henan was disrupted, the inventory changes in Gongyi will deserve close attention next week. The inventory in Foshan was also in a downward trend amid relatively brisk trades. Given the output cuts by aluminium smelters and increased proportion of aluminium liquid production, there is little possibility of inventory accumulation in the foreseeable future. SMM data showed that the proportion of aluminium liquid in smelters’ total output increased to 69.8% in October. It is expected that the social inventory will stay at a low level.
Aluminium billet: The domestic aluminium billet social inventory added 2,400 mt from a week ago to 63,000 mt as of November 24. Enormous arrivals from Xinjiang pushed the inventory in Foshan up by 1,100 mt to 40,100 mt. Shipments from Qinghai and Gansu were still hindered, leading to limited arrivals. The supply in east China remained tight. Output cuts in north-west China, coupled with the pandemic-induced production and railway transport disruptions in Shandong, resulted in fewer shipments to east and north China, offering some support to local conversion margins. Despite tight supply in some regions, the overall conversion margins declined due to sluggish transactions with arrival of the off-season.