SMM China Weekly Aluminium Inventory (Mar 16, 2023)

SHANGHAI, Mar 16 (SMM) – Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 1.21 million mt as of March 16, down 56,000 mt from a week ago and 58,000 mt from early March. The social inventory, albeit up 121,000 mt YoY, has been falling for two consecutive weeks. The decline was led by Foshan, where improving consumption and falling aluminium prices fuelled downstream buying interest. Moreover, output cuts in Yunnan in late February also tightened supply in Foshan. Stocks in Wuxi and Gongyi began to fall, even though the decline was small. In particular, stocks in Gongyi remained high. Considering that the current transactions are mostly driven by rigid demand, it remains to be seen whether the destocking will sustain. 
Aluminium billet: The domestic aluminium billet social inventory stood at 169,400 mt as of March 16, up 6,000 mt from a week ago. Smooth arrivals and firm conversion margins suppressed buying interest. The conversion margins are at risk of falling amid the current market situation.