Two Months Of Aluminium Billet Inventory Decline In China Came To An Abrupt End

SHANGHAI, Aug 4 (SMM) –After two months of decline, aluminium billet inventory began to build up in the middle of the week due to sluggish demand. As of August 3, 2023, SMM has recorded a total domestic aluminium billet inventory of 78,900 mt, marking an uptick of 5,100 mt since the start of the week, and 3,800 mt from a week ago. Despite these increases, inventory levels remain at a comparative low for the same period over the last three years. The inventory growth was primarily attributed to the regions of Foshan, Wuxi, and Nanchang. Regionally speaking, SMM data shows a slight increase in aluminium billet arrivals in the Foshan area, resulting in an inventory boost of approximately 10% in the week ending August 3. However, a noticeable decline in consumption caused local aluminium billet inventories to rise above 40,000 mt. In East China, including the major consumer regions of Wuxi and Nanchang, the aluminium billet shortage situation has seen some improvement. Moreover, with weakening acceptance from downstream buyers, there was a minor increase in aluminium billet inventory levels in Wuxi and Nanchang. Meanwhile, aluminium billet inventories in other areas, such as Changzhou and Huzhou, have remained relatively steady.