China’s domestic aluminium billet inventory had heightened by RMB 22,700 tonnes or 21.45 percent W-o-W to stop at RMB 128,600 tonnes, as of May 5, 2022.  Because of the pandemic's ongoing interruption of consumption, downstream purchasers have become increasingly cautious. However, when aluminium prices fall below RMB 20,000 tonnes, demand may increase. After stockpiles are digested, buyers will refill, easing inventory pressure.

The figure below provides further information on the current state of aluminium billet inventories in China:

The price in Foshan had hiked by RMB 25,000 tonnes to score at RMB 70,500 tonnes, followed by a decline of RMB 4,880 tonnes to stop at RMB 22,900 tonnes. Inventory in Foshan has risen due to large arrivals from Yunnan over the holiday season and slow trading.

Due to the resurgence of the pandemic, local firms in Wuxi's Jiangyin may be compelled to shut down or reduce output, which would damage local consumption.

For the same day in Changzhou, the price had ascended by RMB 1,600 tonnes to halt at RMB 13,500 tonnes. In Huzhou the price has surged by RMB 1000 per tonne to settle at RMB 15,000 tonnes. In Nanchang the price had stood restrained at RMB 6,720 tonnes.

Source:AlCircle