According to SMM statistics, as of July 28, the inventory of primary aluminium ingots in China's mainstream consumption areas stood at 533,000 tonnes, an increase of 23,000 tonnes compared to Thursday last week and 35,000 tonnes compared to Monday last week. On a YoY basis, domestic aluminium ingot inventory lost its advantageous position of being at a low level compared to the same period in the past three years. Although it still decreased by 281,000 tonnes compared to the same period last year, it increased by 8,000 tonnes compared to the same period in 2023.
In terms of outflows from warehouses, the weekly outflows of aluminium ingots from major consumption areas in China in the past week were 92,500 tonnes, a significant decrease of 15,700 tonnes W-o-W. Excluding the impact of the Chinese New Year holiday week at the beginning of this year, the outflow data has hit a new low for the year.
Entering the latter half of July, due to the decline in the proportion of liquid aluminium within the month, the supply pressure of domestic aluminium ingots remained high, and the volume of aluminium ingots in transit continued to maintain a relatively high level. The domestic inventory buildup trend continued, and it was temporarily expected that inventory would build up to 550,000-600,000 tonnes by the end of July.
From a regional perspective, Gongyi area was previously affected by regional price spreads, with expected and actual arrivals being relatively low, and inventory pressure being limited. Although there was an increase in the supply of goods in Qinghai area, it was mainly transported by truck to factories, and the recent decline in truck transportation costs, as well as an increase in the proportion of goods transported by truck from Xinjiang area.
However, according to the latest feedback from local warehouses, the shipment and warehousing volumes of goods in Qinghai area have increased in the past week. Concentrated arrivals led to an inventory buildup of 9,000 tonnes on Monday this week, making it the area with the most inventory buildup over the weekend.
