According to Shanghai Metals Market, stocks of 6063 aluminium billet across five major consumption areas further extended decline in China. SMM research found that after plunging over the week, billet stocks came in at 146,700 tonnes today, on February 28. Last week, on February 21, the inventories were at 164,500 tonnes; thus, today they dropped by 17,800 tonnes or 11 per cent.
The reason for this week-on-week decline of aluminium billet stocks could be the fewer arrivals of cargoes at warehouses. As many downstream producers were on holiday for the Chinese New Year, the domestic production perhaps had gone down, and that prompted the lower supplies of billets to warehouses.
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The above chart represents that aluminium billet stocks in Foshan Guangdong stood at 82,500 tonnes today, after dropping 6,500 tonnes from the last week, according to SMM. Stocks in Wuxi, Jiangsu decreased some 300 tonnes and stood at 27,400 tonnes, while that in Huzhou, Zhejiang, and in Nanchang, Jiangxi plunged some 4000 tonnes and 5000 tonnes to clock at 6000 tonnes and 10,800 tonnes, respectively.
However, this week-on-week billet stocks decline did not prompt to any price movements of aluminium alloys, learned SMM research. Aluminium alloys (ADC12) price was found at RMB 14,800 per tonne, and aluminium alloy (A356) and aluminium alloy (A380) at RMB14,300 per tonne and RMB 15,500 per tonne.
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