On Thursday, February 16, China’s aluminium billet inventory slumped by 12,100 tonnes from 214,400 tonnes recorded the previous week. The inventory as of today settled at 202,300 tonnes. After earlier halting the increasing trend, there were two weeks of fall. Each of the five major markets saw a decline in inventory due to a significant outflow of goods from warehouses. Production of aluminium billets has essentially been restored to normal levels, and vast quantities of billets have flooded the market in east China, causing havoc with prices.
The figure below provides further information on the current state of aluminium billet inventories in China:
As per the SMM data, the inventories in Foshan and Huzhou have plunged by 9,700 tonnes and 1,000 tonnes to peg at 99,500 tonnes and 48,000 tonnes. On the same day, Changzhou's inventory fell by 900 tonnes to settle at 2,900 tonnes.
Today, both Wuxi and Nanchang have witnessed a slip of 400 tonnes and 100 tonnes to halt at 47,800 tonnes and 4,100 tonnes. The demand for aluminium billets increased, pushed mainly by the construction industry's aluminium extruders, whose orders have significantly increased. The inventories are anticipated to keep declining somewhat over the next week.
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