Aluminium Billet Inventory in China Increased as Pandemic Undermined Consumption

Published: Apr 7, 2022 14:27
Source: SMM
SHANGHAI, Apr 7 (SMM) - The domestic aluminium billet inventory stood at 165,600 mt as of April 7, an increase 8,100 mt or 5.12% from a week ago.

SHANGHAI, Apr 7 (SMM) - The domestic aluminium billet inventory stood at 165,600 mt as of April 7, an increase 8,100 mt or 5.12% from a week ago. The regional inventory changes were as follows: Nanchang (+3,900 mt or 57.91%); Changzhou (-4,700 mt or 21.17%); Wuxi (-600 mt or 1.57%); Huzhou (+4,000 mt or 30.77%); Foshan (+5,500 mt or 7.22%). The pandemic-induced transportation problems in Wuxi prompted buyers to pick up cargoes from Changzhou, where the pandemic was less severe, leading to a sharp decline in local inventory. This week, the impact of the pandemic on truck shipments has intensified, especially in east China, where both inflows and outflows of cargoes were hindered. In addition, traders and downstream producers refrained from purchasing amid sluggish end consumption, also contributing to higher inventory in Foshan, Huzhou, and Nanchang. 

Given declining demand in mainstream consumption areas under the influence of the pandemic, it is expected that the aluminium billet inventory will continue to accumulate next week.

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Aluminium Billet Inventory in China Increased as Pandemic Undermined Consumption - Shanghai Metals Market (SMM)