SHANGHAI, Aug 11 (SMM) –According to the SMM data for August 10th, 2023, the inventory of aluminium ingots within China’s eight major markets recorded at 511,000 mt. This figure marks a decrease of 6,000 mt since the start of the week, a reduction of 14,000 mt from the previous Thursday, and a significant drop of 182,000 mt from the same period last year. This continues to represent a five-year low compared to the same period of previous years. Cargo arrivals remained limited, especially in Wuxi, which is the main reason for inventory decline. Stocks in Wuxi fell the most, followed by slight drop in Foshan, Shanghai, Tianjin and Chongqing, whereas those in Gongyi rose. Hindered shipments by railway and low transportation efficiency by truck resulted in fewer cargoes arriving in Wuxi, while cargo pick-up from warehouses improved, driving down local stocks, which allowed spot discounts in the region to stabilise. Price inversion between Foshan and East china discouraged smelters in Xinjiang from sending cargoes to South China, which led to decline in arrivals. That being said, stocks in Foshan did not fall and stabilized instead as local demand also softened. Trading activities in Gongyi turned brisk as local demand recovered, boosting local prices and attracting cargo inflows from other regions. This caused local stocks to build up. As we head into August, demand may pick up slightly since the traditional peak season is drawing near. We will keep a close eye on downstream orders and restocking, as well as any change in the supply side, including adjustment to molten aluminium output ratio.
