Shanghai bonded aluminium stocks rose significantly in August after numerous cargoes were sent to China during the month amid expectations that China's arbitrage window will reopen soon.
Fastmarkets assessed Shanghai bonded aluminium stocks at 105,000-106,000 tonnes on Tuesday August 31, a 63.6% increase from 64,000-65,000 tonnes on July 30 and more than 13 times higher than the year-ago stock level of 7,500-8,000 tonnes.
"We have already delivered some [aluminium ingot] to Shanghai bonded warehouses and the bonded warehouses were fully stocked in preparation for an open arbitrage window," one international aluminium trader told Fastmarkets.
China's aluminium price has been firmly supported by reduced supply since the start of this year due to
power restrictions in many of the country's provinces.
The recent
expansion to power restrictions in Guangxi province in southern China has further aggravated supply tightness.
Meanwhile, continuously falling inventory in Shanghai Futures Exchange-approved warehouses indicates strong demand in the slower seasons.
Aluminum stocks in SHFE-approved warehouses fell again on August 27 after a slight gain the...