China’s primary aluminium inventory declines as shipping capacity shrinks
According to Shanghai Metals Market, social inventories of primary aluminium across eight major consumption areas in China, including SHFE warrants, stood at 1.282 million tonnes as of Thursday January 10, down 20,000 tonnes from Wednesday January 2.
For the same period, stocks in Wuxi, Jiangsu and Shanghai decreased by about 15,000 tonnes and 11,000 tonnes to stand at 508,000 tonnes and 305,000 tonnes while stocks in Nanhai, Guangdong and Gongyi, Henan increased by some 6,000 tonnes and 4,000 tonnes to stand at 153,000 tonnes and 113,000 tonnes.
The below chart indicates the current status of primary aluminium inventories across China:
As the Chinese New Year holiday approached, shipping capacity shrank and downstream consumers stockpiled raw materials, which lowered shipment arrivals and raised deliveries leaving social warehouses.
Source: Al Circle