A00 aluminium ingot price rises by RMB20/t on further decline in primary aluminium inventories

The social inventories of primary aluminium have extended decline over the weekend, as stocks in Nanhai continued to fall, according to Shanghai Metals Market.

SMM data showed the stocks across eight major consumption areas, including SHFE warrants, decreased by 11,000 tonnes from 834,000 tonnes on last Thursday, November 14, to stand at 823,000 tonnes on Monday, November 18. Week-on-week, the stocks have inched down by 27,000 tonnes from 850,000 tonnes on last Monday, November 11.

The chart below indicates the current status of primary aluminium inventories across Chinese markets in more details:

So, as can be seen in the above chart, the inventories in Shanghai and Nanhai have declined by 3,000 tonnes and 10,000 tonnes respectively to come in 141,000 tonnes and 253,000 tonnes respectively, while that in Gongyi and Tianjin have grown by 1,000 tonnes to stand at 54,000 tonnes and 55,000 tonnes. In some markets, on the other hand, like in Wuxi, Hangzhou, Chongqing, and Linyi, the inventories have continued at 239,000 tonnes, 55,000 tonnes, 21,000 tonnes, and 5,000 tonnes, respectively.

On the continued decline in primary aluminium inventories, the A00 aluminium ingot price has grown by RMB 20 per tonne today, on November 18, to stand at RMB 13,940 per tonne. The average prices are expected to range between RMB 13,920 per tonne and RMB 13,960 per tonne, with spot contract to be traded at a premium price of RMB 80-120 per tonne.

However, as the rise in ingot price today has not touched upon all the major markets in China, the price in Wuxi, Hangzhou, and Linyi has continued to remain at RMB 13,940 per tonne, RMB 13,960 per tonne, and RMB 13,990 per tonne, respectively. In Shenyang, on the other hand, the ingot price has even declined as well by RMB 25 per tonne to RMB 13,930 per tonne. In Foshan, Tianjin, and Gongyi, the ingot price has increased by RMB 25 per tonne, RMB 40 per tonne, and RMB 35 per tonne to stand at RMB 13,890 per tonne, RMB 13,940 per tonne, and RMB 13,880 per tonne.