SMM Aluminium Ingot and Billet Social Inventory in China as of March 9, 2023

SHANGHAI, Mar 9 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 1.267 million mt as of March 9, down 2,000 mt from a week ago, but up 122,000 mt from the same period last year. The social inventory remained high. Since the end of February, the inventory build-up has slowed down significantly, and the inventory has basically hovered around 1.27 million mt. Aluminium prices fluctuated rangebound, while downstream demand was recovering slowly. Aluminium ingot stocks have basically plateaued after continuous accumulation, with eyes on when the destocking process will begin.

Aluminium billet: After four consecutive weeks of decline, the domestic aluminium billet social inventory began to rise this week, adding 7,200 mt from a week ago to 163,400 mt as of March 9. Smelters raised the proportion of molten aluminium output last month, allowing more billets to arrive in early March. Wuxi led the growth as the lifting of storage restrictions pushed local inventory up by 8,400 mt. In addition, cooling transactions after extended period of high conversion margins also resulted in the inventory accumulation. As demand recovery failed to keep pace with production ramp-up, supply tightness in the billet market has eased. SMM expects that the aluminium billet social inventory will hover around the current level next week.