Aluminium Ingot Social Inventories Rose Slightly from Last Thursday

SHANGHAI, Dec 19 (SMM) -  The aluminium ingot social inventories across China’s eight major markets stood at 483,000 mt as of December 19, up 1,000 mt from last Thursday. However, the figure was 34,000 mt lower than the end of November and 409,000 mt less than the same period last year. The inventory in Nanhai fell below 110,000 mt as the shipments out of local warehouses added 4,400 mt last week. Wuxi reported stable inventories and shipments out of warehouses. Some brands maintained firm premiums, while the prices of ordinary aluminium ingots were close to the SMM A00 aluminium prices. Inventory in Gongyi added 4,000 mt from last Thursday to 79,000 mt due to arrivals of cargoes in transit. Discounts in Gongyi exceeded 200 yuan/mt last Friday. Traders restocked after delivery of 2212 contract, while downstream buyers restocked only as needed.

Based on the current situation, it is expected that the inventory of aluminium ingots will remain at a low level. Market players will need to closely watch how the logistics will be affected with more people being infected with COVID after the pandemic restrictions are eased.