Shanghai Nonferrous Metals News
14th May 2020: Total domestic aluminium inventory at China’s major store houses dropped by 114 kt from last Thursday to 1.058 mln t, including 139 kt in Shanghai, 442 kt in Wuxi, 111 kt in Hangzhou, 64 kt in Gongyi, 224 kt in Nanhai, 57 kt in Tianjin, 13 kt in Chongqing and 8 kt in Linyi. As of today, overall aluminium stocks in major warehouse had dropped by more than 600 kt from early April, a much larger amount and at a faster rate than anticipated.
With improved profit margins, domestic aluminium smelters are scaling back production cuts. In the meantime, with the recent opening of the import arbitrage window for aluminium ingot, SMM revealed that an increasing amount of imported aluminium ingot has appeared on the southern and eastern China markets. SMM analysts forecast that the impact of increasing aluminum imports will be felt by late May or early June.
