SMM Weekly Updates on China Aluminium Ingot and Billet Social Inventories (Apr 13, 2023)

SHANGHAI, Apr 13 (SMM) - Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets totalled 966,000 mt as of April 13, down 72,000 mt from a week ago and 40,000 mt from April 3. The figure was also 97,000 mt below the same period last year. So far this month, the inventory has dropped by 121,000 mt. The current inventory is at the lowest level when compared to the same period of the past five years. The low inventory of aluminium ingots is partly associated with growing proportion of molten aluminium in smelters’ total output. Therefore, how the share of molten aluminium and aluminium ingot output will change deserves close attention. In view of falling cargo arrivals, aluminium ingot stocks are expected to drop further.

Aluminium billet: The domestic aluminium billet social inventory stood at 159,600 mt as of April 13, down 4,900 mt from a week ago. The past few weeks have seen limited changes in aluminium billet inventory. The weekly decline was mainly due to fewer arrivals caused by railway maintenance in Xinjiang. Aluminium billet withdrawals from social warehouses in major markets have decreased for four consecutive weeks as demand recovery failed to sustain into April. The simultaneous reduction in arrivals and sales have resulted in small fluctuations in aluminium billet stocks. SMM will keep a close eye on when the transportation in Xinjiang will recover and changes in downstream operating rates.