On Thursday, September 15, the domestic social inventory of aluminium billets dropped by 2,700 tonnes or 2.29 per cent across three major consumption areas to close at 114,900 tonnes. This month, the orders received by downstream businesses had hardly improved. Since downstream producers are concerned that projected output reductions in Yunnan would increase aluminium prices, they will be more inclined to hoard. As a result, the social inventory of aluminium billet may drop slightly soon.
The figure below provides further information on the current state of aluminium billet inventories in China:
The inventories in Huzhou and Nanchang had ascended by 2,000 tonnes or 1,200 tonnes to close at 16,000 tonnes or 4,700 tonnes. The increment was due to the steady arrivals and weak downstream demand.
On the same day, the inventory in Foshan slumped by 4,900 tonnes or 6.26 per cent to stop at 73,300 tonnes, from 78,200 tonnes recorded last week. Fewer arrivals from Yunnan and post-holiday downstream restocking caused Foshan's inventory to reverse its prior increasing trend. As per the data, the inventory in Wuxi and Changzhou slipped by 600 tonnes and 400 tonnes to close at 15,100 tonnes and 5,800 tonnes.
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