June 13 News:
According to SMM statistics, as of June 13, the inventory of aluminum ingots in Guangdong was 181,000 mt; in Wuxi, it was 108,000 mt; and in Gongyi, it was 45,500 mt. The total inventory across these three locations was 334,500 mt, a decrease of 4,500 mt from the previous trading day. The core driver of destocking lies in the continued tightness on the supply side. Strategic adjustments by aluminum smelters in multiple northern regions and some aluminum smelters in south-west China have led to a MoM decline in casting ingot volumes. This, combined with the consistently low volumes of aluminum ingots in transit and actual arrivals in major consumption areas, has jointly resulted in a tight supply of circulating goods. Despite expectations of a slight increase in shipments from north-west China and inter-regional transfers due to price spreads, the short-term increase has not yet caused significant pressure. Attention should be paid to whether there will be a significant increase in arrivals in east China in the future. Meanwhile, the resilience of consumption during the off-season (particularly in east China) has effectively absorbed the recent low supply. Looking ahead, it is expected that inventory will continue to decline under the support of low arrival volumes in the short term.
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