Aluminum ingot destocking accelerated before Labour Day holiday

On Apr 25, 2024, SMM data showed that the social inventory of aluminum ingots in China’s eight major markets was 807,000 mt, (the amount for sale stood at 681,000 mt), down 37,000 mt WoW, down 24,000 mt compared with Apr 22 and 77,000 mt YoY, remaining at the lowest compared to the same period of past seven years. In the week, the amount of aluminum ingots picked up from warehouses rose by 7,700 mt WoW to 119,200 mt. The increase in cargo pick-up drove inventory to steadily decline since late April. In addition to continued closure of the import window, the downstream peak season, and the market's improved adaptability to current aluminum price, the low aluminum ingot in-plant inventory, the aluminum price of 20,000 yuan/mt, and the downstream rigid demand for stocking before Labour Day holiday also contributed to the destocking. Driven by downstream stockpiling before Labour Day holiday, aluminum ingot inventories in each of the three major consumption areas on Apr 25 dropped by 10,000 mt or more WoW. The aluminum ingot inventories in other regions also declined, somehow supporting spot premiums and discounts under high aluminum prices. The spot premiums and discounts in the three places moved rangebound in the week.