A billet is one of the most widely used aluminium product forms globally. Billets can be produced immediately by continuous casting, extrusion, or hot rolling an ingot or bloom. On Thursday, November 3, aluminium billet inventories in China increased by 4,700 tonnes W-o-W, closing at 60,500 tonnes.
Arrival times were delayed by slower transportation, and downstream consumers in east and south China were more cautious due to the epidemic. It is anticipated that the social inventory will grow modestly next week.
The figure below provides further information on the current state of aluminium billet inventories in China:
According to the SMM data, inventories in Wuxi and Huzhou ascended by 6,200 tonnes or 119.23 per cent and 1000 tonnes or 20 per cent to settle at 11,400 tonnes and 6,000 tonnes. The pandemic in east China, coupled with ongoing arrivals and stifled downstream demand, caused the stockpile in Wuxi to dramatically increase. The epidemic has generally affected supply and demand.
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On the same day, inventories in Changzhou and Nanchang witnessed a growth of 300 tonnes and 500 tonnes to peg at 4,400 tonnes and 4,100 tonnes. However, inventory in Foshan decreased by 3,300 tonnes or 8.70 per cent to rest at 34,600 tonnes. The destocking in Foshan was caused by continued low supplies from Yunnan province and a surge in downstream buying when aluminium prices fell below RMB 17,500 per tonne.
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