According to the Shanghai Metals Market survey, social inventories of primary aluminium have grown by 15,000 tonnes over a week ending Thursday, February 23. On a week-on-week basis, the stocks have increased by 32,000 tonnes across eight major consumption areas, including SHFE warrants, to amount to 1.248 million tonnes.
Aluminium ingot inventories have grown slowly as the warehouses in Gongyi and south China controlled cargo inflows due to limited storage and equipment maintenance, respectively. However, in the short term, the inventory is expected to stabilise at a higher level.
The chart below indicates the current status of primary aluminium inventories across China in more details:
Among the major consumption areas, Wuxi has reported the highest accumulation of stocks over a week. According to SMM data, primary aluminium inventory in Wuxi has increased by 25,000 tonnes to stand at 439,000 tonnes. In Nanhai, the invenstory has built-up 14,000 tonnes week-on-week from 303,000 tonnes on February 16 to 317,000 tonnes on February 23. Linyi and Shanghai have witnessed a rise of 2,000 tonnes and 1,000 tonnes in inventories to 30,000 tonnes and 51,000 tonnes, respectively.
Meanwhile, inventories in Gongyi and Hangzhou have shrunk by 6,000 tonnes and 4,000 tonnes to come in at 248,000 tonnes and 75,000 tonnes, as of February 23. In Chongqing and Tianjin, inventories have remained restrained at 11,000 tonnes and 77,000 tonnes, respectively.
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