SMM Aluminium Ingot and Billet Social Inventories in China as of January 19

SHANGHAI, Jan 19 (SMM) -  Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 744,000 mt as of January 19, up 102,000 mt or 15.8% from a week ago and 252,000 mt from the end of December. The figure was also 18,000 mt higher than the same period last year. The inventory accumulation during the Chinese New Year (CNY) varied each year, and averaged around 160,000 mt, but occasionally stood as high as 180,000-190,000 mt. In view of the enormous aluminium ingots that are currently in transit, the social inventories will probably add more than 160,000 mt during the 2023 CNY holiday. Assuming an inventory accumulation of 180,000 mt during the holiday, the social inventories will total approximately 920,000 mt after the holiday.  

Aluminium billet: The domestic aluminium billet social inventory extended the increase this week and stood at 131,900 mt as of January 19, up 37,200 mt or 39% from week ago. The growth far outpaced the increase of 19.6% 29% in the last week before the CNY holiday in 2022 and 2021. All the major markets saw inventory accumulation. The inventory in Foshan added 18,900 mt to 64,300 mt, driven by high shipments from south-west China. The inventory in east China also maintained seasonal accumulation. Billet plants in Shandong shipped their surplus cargoes to Jiangsu and Zhejiang, but the transactions were muted. Aluminium billet output cuts are expected to expand further in January. Most of the small and medium-sized aluminium extruders were shut down last week for the CNY holiday, leaving only a small number of large extruders still in operation to digest their orders. The aluminium billet social inventories in east and south China are expected to climb further. And the inventories of billet plants and downstream enterprises will also gradually pile up.