Destocking In Chinese Aluminium Ingot Market Slows Down, SMM Data Shows

SHANGHAI, Apr 27 (SMM) – 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