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SMM China Aluminum Ingot and Billet Social Inventory as of December

iconDec 1, 2022 16:32
Source:SMM
SHANGHAI, Dec 1 (SMM) – Aluminium ingot: SMM statistics showed that the aluminium ingot social inventory across China’s eight major markets stood at 500,000 mt as of December 1, a drop of 18,000 mt from a week ago.

SHANGHAI, Dec 1 (SMM) – Aluminium ingot: SMM statistics showed that the aluminium ingot social inventory across China’s eight major markets stood at 500,000 mt as of December 1, a drop of 18,000 mt from a week ago. The figure was also 81,000 mt lower than a month ago and 503,000 mt less than a year ago. All the eight major markets reported inventory declines, except for Gongyi. The inventory in Wuxi dropped 11,000 mt from November 28 due to fewer arrivals after some smelters shipped their cargoes to south China, where the premiums were relatively higher. The inventory in south China decreased 9,000 mt from a week ago, but fell just 2,000 mt from November 28. The inventory in Gongyi added 5,000 mt from a week ago as the pandemic and rising aluminium prices suppressed downstream purchases. Despite low inventory, spot premiums declined due to weaker downstream consumption. The destocking is expected to slow down, with eyes on how the spot premiums will change at the current high aluminium prices.

Aluminium billet: The domestic aluminium billet social inventories stood at 69,000 mt as of December 1, up 6,000 mt from a week ago and 9,800 mt from a month ago. However, the figure was 2,700 mt less than a year ago. Since late October, aluminium billet inventory has accumulated intermittently, but the increase was small, and the total inventory was still hovering below 70,000 mt, which is far lower than the same period of the previous two years. All the major markets saw different degrees of inventory accumulation, led by an increase of 4,300 mt in Foshan, where downstream consumption was sluggish.The demand in Wuxi, Changzhou and Huzhou was relatively better than that in south China, thus the local inventories rose only slightly. Downstream purchases declined after aluminium prices exceeded 19,000 yuan/mt.It is expected that the social inventory will continue to grow next week.

Inventory

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