Following the restocking mid-week, the current aluminium ingot inventory has reached a new high for H2, up 243,000 tonnes year-on-year. The incessant increase in inventory since early July, due to a production surge in May and June and weak demand due to the ongoing traditional off-season, has been exerting pressure on domestic prices, bringing them below the RMB 20,000 per tonne level.
SMM expects the decline in domestic aluminium ingot inventory in July will be limited, likely fluctuating between 750,000 tonnes and 850,000 tonnes.
On the other hand, social inventories of aluminium billet showcased a contrasting scenario, shedding off 6,000 tonnes W-o-W. As a result of a rebound in aluminium billet pick-up from warehouses by about 4,200 tonnes W-o-W to 42,400 tonnes, aluminium billet inventory decreased to 140,700 tonnes as of July 18.
