Continued W-o-W fall in primary aluminium inventories lifts A00 aluminium ingot price afters three days of decline

The social inventories of primary aluminium have once again recorded a week-on-week decline, as of Thursday, November 14, found Shanghai Metals Market, as stocks in Nanhai continued to fall sharply.

SMM data shows the primary aluminium stocks across eight major consumption areas, including SHFE warrants, have decreased by 19,000 tonnes from a week ago to stand at 834,000 tonnes. On the last Thursday, November 7, the inventories were at 853,000 tonnes after declining by 17,000 tonnes over the week. This indicates that the fall in inventories has grown this week by 2,000 tonnes.

The stocks in Nanhai have seen a drop of 16,000 tonnes on November 14 to stand at 263,000 tonnes and that in Gongyi and Chongqing have decreased by 5,000 tonnes to 53,000 tonnes and 21,000 tonnes. In Wuxi, however, the stocks have grown by 8,000 tonnes to come in at 239,000 tonnes.

The chart below shows the current status of primary aluminium inventories in more details:

The continued week-on-week fall in primary aluminium inventories today has, however, been successful in lifting the A00 aluminium ingot price after three consecutive declines through the week from RMB 14,230 per tonne to RMB 13,900 per tonne. Today, the price has come in at RMB 13,930 per tonne as it has gained by RMB 30 per tonne, found SMM data.

The price in Hangzhou has seen the highest rise of RMB 40 per tonne to stand at RMB 13,960 per tonne, followed by Wuxi and Gongyi by RMB 35 per tonne to RMB 13,940 per tonne and RMB 13,835 per tonne, respectively. In other major cities such as Foshan, Chongqing, Shenyang, Linyi, and Tianjin, the price has grown by RMB 30 per tonne and RMB 20 per tonne, respectively.

The input costs, on the other hand, have registered no change today. While the average spot price of alumina has continued to hover at RMB 2,572 per tonne, the price of the pre-baked anode, aluminium fluoride, and bauxite has remained the same at RMB 2,980 per tonne, RMB 8,100 per tonne and RMB 560 per tonne, respectively.