Aluminum stocks in China’s seven major markets have added another 57,000 tonnes week-on-week to 1.53 million tonnes this week, SMM data showed.Consumption falls faster than supply, leading to the big growth.

In the face of off-season and high aluminum prices, downstream producers choose to buy as needed or work through stocks on hand. Some processors have halted production as a result of environmental policy, further hurting aluminum demand. Aluminum processors cut exports after the   aluminum price ratio rose. Aluminum stocks should rise at a slower pace or even begin to fall with arrival of high-demand season in September. However, whether aluminum market will enter significant de-stocking will depend on both supply and consumption .

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