Aluminum ingots in transit show signs of falling, suggesting potential inventory drop in the future

As of October 26, 2023, China's aluminum ingot inventory was at 623,000 mt, down 7,000 mt from October 23 and 3,000 mt from October 19, but still 2,000 mt higher than the same period last year. Despite post-holiday stock fluctuations, inventory slightly dropped over the week. A decrease in domestic goods in transit might lead to a slight reduction in future arrivals. With sluggish downstream demand, post-holiday stock consumption hasn't met expectations. While weak supply and demand haven't caused a notable inventory turning point, it's expected that aluminum ingot inventory will stabilize and slightly decrease in the future.

Inventories in China's major consumer regions were steady or slightly down. In East China, Shanghai's inventory fell by 2,000 mt, while Wuxi's remained high and unchanged, with flat demand leading to slow stock consumption. In South China, with a decrease in goods received and stable shipments, Foshan's inventory dropped by 3,000 mt. Goods in transit in South China are decreasing, suggesting inventory may stay steady or slightly decrease. Gongyi's inventory fell by 1,000 mt, partially due to limited arrivals from Northwest Xinjiang. With an increase in goods in transit and eased shipments, Gongyi's inventory might face future pressures.