China’s aluminium stockpiles reach new high

China’s aluminium inventories reached a record high this week, caused by rapidly growing supply and weak demand in the country, China Daily reported on Sunday.

The country’s overall aluminium stockpiles climbed to 1.25 million tonnes on Monday, almost double the level during the same period late year. On January 10, 2012, this stood at about 700,000 tonnes, analyst Li Xun was quoted as saying. Li told China Daily the excessive supply in China’s aluminium industry will continue at least for the first half of the year.

“The aluminium price will fall by 200 yuan ($32, Dh118) to 300 yuan a tonne during this week,” he said. “That is considered a dramatic price drop in the market.”