On May 23, 2024, SMM data showed that the social inventory of aluminum ingots in China’s eight major markets was 767,000 mt, (the amount for sale stood at 641,000 mt), up 20,000 mt WoW, and up 110,000 mt YoY, indicating that the rising aluminum prices significantly weighed on domestic aluminum ingot consumption. The weekly amount of aluminum ingots picked up from warehouses was 114,800 mt, up 5,300 mt WoW, but still below pre-holiday levels. SMM believed the recent inventory build-up is due to the following reasons: (1) Increased arrival pressure. The increase in arrivals in South China mainly came from Guangxi and Yunnan, especially as recent supply disruptions in Guangxi led to increased inventory pressure at some upstream aluminum plants. Due to a slight increase in ingot volume in May, arrivals of domestic aluminum ingots may rise further. (2) High aluminum prices continued to inhibit cargo pick-up. In late May, sluggish demand and high aluminum prices weighed on spot transactions and cargo pick-up. SMM believed that domestic aluminum ingot inventory performance can no longer support the fundamentals.