Aluminum mesh YORK October 27 hearing (compiler / Kathy) due to the slowdown in consumption and production is still strong performance this year, China's primary aluminum business inventories have doubled. Smelter sources, analysts and traders said on Friday.
Hangzhou, China Sea, Shanghai and Wuxi four major industrial cities in the warehouse inventories of primary aluminum ingots business Thursday reached 996,000 tons, an increase of about 550,000 tons at the end of last year, the highest level since July 2010, SMM, said analyst ROCKETS .
They could rise further, he added.
The inventory includes metal Shanghai Futures Exchange. The exchange detects aluminum inventories last week reached 434,363 tons, the highest level since January 2011.
"China's total inventory should be between 1.1 million tons to 1.2 million tons," a trading manager of a large smelter said, including inventory smelter.
"Because local production much faster than the growth in consumption, so inventory accumulated."
Although demand rose slightly in September for the housing sector aluminum maker get more orders, but by domestic and foreign economic recession hit, Chinese consumption has slowed this year.
"Demand from the beginning of September, and not much has changed. We've seen a slight rebound in demand for real estate market," Guangdong Province is an aluminum products manufacturer, a top executive said.
He said in early October on the Fair, and many semi-finished and finished aluminum exporters fewer orders, and by next year March exports may be reduced by 30% year on year.
Analysts ROCKETS aluminum consumption in China is expected to grow by 7 percent this year to 8%, while last year was more than 12%.
Official data show that, despite the September production due to weak prices were down 4.4%, but before September aluminum production increased by 10.6 percent to 14.77 million tons.
But the monthly production is likely to rebound soon on the new low-cost capacity. Annual production capacity of approximately 1.2 million tons in the fourth quarter may be put into operation, most of the electricity costs are lower than in other parts of the northwest provinces, ROCKETS estimates.
With the local government to help reduce electricity costs, China's seventh largest aluminum producing provinces - province of Guizhou production may also rise.
Smelter sources said, the Guizhou provincial government is giving local aluminum smelter construction of transmission lines and set the price directly with the nearby smelter plant in order to cut production costs by about 7% -8%.
Beijing in January approved the Guizhou most users after the introduction of the policy are powered directly.