SMM Weekly Updates on China Aluminium Ingot and Billet Social Inventory in Week Ending Apr 27, 2023

SHANGHAI, Apr 27 (SMM) – Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets stood at 853,000 mt as of April 27, down 53,000 mt from a week ago and 135,000 mt from the same period last year. So far this month, the inventory has dropped by 235,000 mt. The destocking was mainly driven by fewer cargo arrivals. With an increasing share of molten aluminium being cast into intermediate products or sold to downstream plants that are located nearby aluminium smelters, less amount of ingot was shipped to major markets. Despite the upcoming Labour Day holiday, downstream companies in east China and Gongyi generally showed little intention of stocking up amid pessimistic demand outlook. Some downstream enterprises plan to take a longer break for the holiday this year. Although inventory of aluminium ingots is relatively low, its weekly decline has slowed down. Market players should keep a close eye on cargo arrivals during the holiday.

Aluminium billet: The domestic aluminium billet social inventory stood at 142,000 mt as of April 27, down 10,600 mt from a week ago. The decline was largely contributed by Foshan and Wuxi, while stocks in other regions barely changed. The weekly average shipments out of social warehouses in major markets dropped 3,700 mt on a weekly basis to 41,000 mt this week. Despite the upcoming Labour Day holiday, most downstream enterprises barely stocked up as their raw material inventory could sustain production through the week-long holiday. Market players should keep a close eye on cargo arrivals during the holiday.