Aluminium Billet Social Stocks In China Begin To Drop, But Still At Three-Year High

SHANGHAI, Jul 7 (SMM) – SMM data showed aluminium billet social stocks in China’s major markets dropped 10,200 mt from a week ago to 136,100 mt as of July 6, but were still near a three-year high compared to the same period of previous years. The sharp decline in billet prices boosted demand in Foshan and Wuxi. In addition, smelters have cut their share of liquid aluminum output and some large billet plants have reduced production since early July, leading to fewer billets arriving, which will continue to be reflected in future inventories. Output reduction will only ease inventory pressure, but is inadequate to reverse supply surplus since demand is in a seasonal lull. The market is still under enormous inventory pressure.

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