SHANGHAI, Sep 8 (SMM) –On September 7, 2023, SMM reported China's social inventory of aluminium ingots at 517,000 mt, decreasing by 2,000 mt from September 4, but increasing by 24,000 mt WOW. The inventory dropped by 155,000 mt YOY, marking the lowest level for this period in the past five years. During the first week of September, following a weekend inventory surge, the resilience of the aluminium product consumer market during the traditional peak season became evident, with significant decline in mid-week stocks. The predominant trend of high supply and low demand has somewhat weakened. In Wuxi, due to positive outflow, a slight decrease in inventory was observed in the week ending September 7, decreasing by 3,000 mt. Shanghai experienced a minor stock accumulation due to an influx of imported goods. In South China's Foshan, pressure on inventory eased, with aluminium ingot stocks remaining stable compared to September 4 and cargo pickup improving. Amid limited arrivals and improving demand, Gongyi saw a slight reduction of 2,000 mt in inventory. SMM anticipates a mild accumulation of aluminium ingot stocks. The supporting role of low inventory on aluminium prices, though still effective, is expected to weaken.
