SHANGHAI, Mar 30 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 1.09 million mt as of March 30, down 20,000 mt from this Monday March 27 and 38,000 mt from a week ago. The figure was up 46,000 mt from the same period last year, though. The weekly decline slowed down significantly from the drop of 85,000 mt recorded in the week of March 20-26. High aluminium prices, limited increase in downstream operating rates, coupled with a lack of confidence over future orders, turned downstream buyers cautious about buying. Output cuts by smelters and increased share of molten aluminium could threaten the production of aluminium ingots, which is expected to extend the destocking into April. However, by how much the stocks will drop depends on downstream operating rates and their purchase attitude.
Aluminium billet: The domestic aluminium billet social inventory dipped 9,600 mt from a week ago to 158,400 mt as of March 30. Some warehouses in east China have suspended taking in aluminium billets. Moreover, enormous amounts of billets were shipped directly to downstream processing plants, instead of social warehouses, also contributing to lower stocks. Some billet plants cut output, tightening supply in the market. The operating rates of construction aluminium extruders have picked up in the peak season. In this context, SMM expects aluminium billet stocks to extend the decline. Market players should pay attention to the commissioning of new capacity in south-west China.
