SHANGHAI, May 19 (SMM) - This is a roundup of China's metals weekly inventory as of May 26.
SMM Weekly Updates On China Aluminium Ingot And Billet Inventories As Of May 25
SHANGHAI, May 25 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 657,000 mt as of May 25, down 49,000 mt from a week ago and 273,000 mt from the same period last year. The weekly decline slowed down significantly, and stocks in different regions diverged. Cargo arrivals in south China fell sharply in the middle of this week and were less than 1,000 mt on Thursday May 25, while cargo outflows from local warehouses picked up slightly, driving down local stocks. Smelters stepped up shipments to east China after local aluminium prices exceeded those in south China. Meanwhile, rapidly expanding spot premiums cooled down transactions in east China, thus the decline in local stocks was relatively slow.
Aluminium billet: The domestic aluminium billet social inventory stood at 141,300 mt as of May 25, down 20,700 mt from a week ago. Smelters have raised the share of non-ingot output this year. Following a period of accumulation after the Labour Day holiday, aluminium billet inventory has begun to fall back. However, the decline has slowed down, and the inventory is basically the same as the end of April and still the highest level compared with the same period of the past three years. SMM sees aluminium billet inventory falling slightly next week and possible output buts by billet plants this month.
Lead Ingot Social Inventory Increased This Week
According to SMM research, as of May 26, the total social inventory of SMM lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin reached 31,800 mt, an increase of 3,000 mt from May 19 and 2,200 mt from May 22.
According to the research, the social inventory of lead ingots increased amid off-season. And downstream enterprises mainly picked up goods in the form of long-term order. The traders in Jiangsu, zhejiang and Shanghai sold at premiums of 0-30 yuan/mt over the SHFE lead prices while that in Henan and Hunan quoted in discounts of 50-0 yuan/mt over the SMM #1 lead price or in discounts of 200-150 yuan/mt aganist SHFE 2306 lead contract.
Bonded Zone Inventory of Nickel Falls 200 mt from May 19
As of May 26, bonded zone inventory of nickel fell 200 mt to 3,900 mt, with the inventory of nickel briquettes and nickel plates of 1,570 mt and 2,330 mt respectively. The inventory dropped as downstream companies still purchased on rigid demand during the week. Imported pure nickel will arrive at ports intensively from the end of May to early June, which will slightly push up the bonded zone inventory.
Zinc Ingot Inventory Down 10,300 mt from May 22
Zinc ingot inventories across seven major Chinese markets totalled 103,700 mt as of May 26, down 10,300 mt from May 22 and 13,200 mt from May 19. Inventories in Shanghai, Guangdong and Tianjin dipped 11,200 mt in total. Inventory in the Shanghai market decreased despite the inflow of imported spots as the downstream companies picked up goods amid crashing zinc prices. Stocks in Tianjian dropped greatly because of the low arrivals and the falling zinc prices. Zinc ingot inventory in Guangdong market also declined on the expanding demand amid the lower zinc prices.
Silicon Metal Stocks In China’s Three Major Regions Declined, Mainly Contributed By Kunming
SHANGHAI, May 26 (SMM) - Social inventories of silicon metal in China’s three major regions totalled 150,000 mt as of May 26, down 7,000 mt from a week ago. The decline was mainly contributed by Kunming, where large quantities of cargoes were withdrawn from warehouses for repackaging in compliance with requirements for delivery brand cargoes. Besides, some cargoes in Kunming were also shipped to ports or delivery warehouses in east China. Outbound volumes at Tianjin Port exceeded inbound volumes, driving down local inventory. Silicon plants in both north and south China have cut production due to losses at the current market prices. Those in Sichuan and Yunnan may resume production later than in previous years in this year’s rainy season. Raw material inventories at downstream enterprises are relatively low.
