SMM Aluminium Ingot and Billet Social Inventories as of February 23

SHANGHAI, Feb 23 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China's eight major markets totalled 1.248 million mt as of February 23, up 32,000 mt from a week ago, up 15,000 mt from this Monday (February 20) and 1.567 million mt higher compared with a year ago. Since January 19, the second day before the CNY holiday, the social inventory has added 504,000 mt. The increase of aluminium ingot stocks slowed down this week, but according to SMM survey, the warehouses in Gongyi and south China controlled cargo inflows due to limited storage and equipment maintenance respectively. Therefore, the actual arrivals and inflows may be larger. The aluminium ingot social inventory is still expected to accumulate slightly or staiblise at a high level in the near term. (Note: Some warehouses in Gongyi stop accepting cargo inflows from 18:00 February 22 to 18:00 February 27 due to accumulated stocks. During the same period, the warehouses in south China are closed for equipment maintenance and stopped accepting inflows.)

Aluminium billet: The domestic aluminium billet social inventory stood at 181,000 mt as of February 23, down 21,300 mt compared with a week ago. The aluminium billet inventory extended the fall this week at a sharper pace. Massive cargo outflows from warehouses drove inventories across each of the four major markets to fall with Nanchang an exception. Aluminium billet supply shrank as some aluminium smelters cut aluminium liquid output while ramping up the production of aluminium ingots, in addition to the closure of some other producers. In contrast, the demand has been improving steadily. As such, it is expected that the total inventories will stay on a downward path next week.