According to the Shanghai Metals Market survey, China’s social inventories of aluminium ingot recorded a significant rise across the eight major consumption areas, including SHFE warrants, as the market resumed on October 7 from a week-long Mid-Autumn Festival holiday. On October 7, the inventories stood at 582,000 tonnes, up by 86,000 tonnes or 17.34 per cent from 496,000 tonnes on September 28. In the next two days, the stocks rose further by 49,000 tonnes or 8.42 per cent to peg at 631,000 tonnes as of October 9.
This inventory surge could be attributed to stable operating rates at domestic aluminium smelters. There were pre-holiday rumours that aluminium production could slow down in Yunnan at the beginning of Q4 2023, but according to SMM research so far, the operating rate of aluminium smelters largely stood steady. Shipments, in contrast, saw no significant growth during the holiday, resulting in higher stockpiles in warehouses.
To know the current status of primary aluminiumi inventories across China in more details, refer to the chart below:
SMM survey found that Wuxi contributed the highest to the growth of Chinese primary aluminium inventories on October 9 by gaining 63,000 tonnes since September 28 to stand at 160,000 tonnes. Primary aluminium inventories in Foshan built up by 33,000 tonnes in ten days to clock in at 168,000 tonnes.
In Gongyi, aluminium ingot inventories hiked by 36,000 tonnes to stand at 77,000 tonnes on October 9 compared to 41,000 tonnes on September 28. In Shanghai and Tianjin, the inventories grew slightly by 2,000 tonnes and 1,000 tonnes, respectively, to reach 71,000 tonnes and 70,000 tonnes, learned SMM.
In Hangzhou, Chongqing, and Linyi, aluminium ingot inventories remained restrained at 64,000 tonnes, 5,000 tonnes, and 16,000 tonnes as of October 9.
Source: SMM
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