Aluminum Ingot Stocks In China Climb Above 500,000 mt

SHANGHAI, Sep 5 (SMM) –On September 4, 2023, according to SMM statistics, the social inventory of aluminum ingots in eight major markets in China was 519,000 mt, an increase of 26,000 mt compared to last Thursday, and a decrease of 162,000 mt YoY. This still marks a five-year low compared to the same period of previous years. With varying degrees of cargo arrivals in various mainstream consumption areas, domestic aluminum ingot inventories have risen to over 500,000 mt. In the first week of September, domestic aluminum ingots showed a trend of strong supply and weak demand. Last week, the most-traded SHFE aluminium contract rose strongly for the fifth consecutive day. Although aluminum prices have risen for nearly half a month, there is no further support from fundamentals. High prices dented downstream purchases. Last week, the weekly withdrawal volume of aluminum ingots from social warehouses was 106,700 mt, up merely 900 mt WoW. The cargo pick-up was small and the overall market pattern showed an oversupply situation. And according to SMM research, high aluminum prices drive aluminum plants to slightly adjust share of aluminum liquid output, and the short-term market will see more goods in transit with the completion of production resumption in Yunnan.