28 November 2022 – Aluminium stocks in Chinese warehouses continue to fall, pointing to a strong recovery in demand. At the same time, the Chinese New Year in 2023 is coming particularly early for buyers. And in Australia, transport costs jump 20% after severe weather and the cancellation of a major rail line.
Chinese New Year Early in 2023
The Asian Lunar New Year festival, which is celebrated not only in China but also in other regions such as Vietnam, South Korea, Taiwan, Singapore, Malaysia, Thailand, Japan, Philippines, and Indonesia, is on the planning agenda of Western buyers quite early for the coming year. The first official holidays, on which work traditionally stops in many countries, begin on 20 January 2023.
So buyers need to place their orders early to get important shipments on their way in time.
Australian freight costs jump by 20%
Due to problems with rail transport, domestic Australian freight costs have recently jumped by 20%. A spokesman for the Australian Rail Track Corporation said that the Broken Hill line will be closed by the end of the year. The background is likely to be severe weather events, among other things, which would have led to significant logistical impacts on supply chains.
Fifth largest cobalt deposit in the world
Australia’s Broken Hill region is known for mining large deposits of zinc, lead and silver. Broken Hill is also said to be home to the fifth largest cobalt deposit in the world.
Chinese aluminium warehouse inventories continue to fall
The important Chinese aluminium inventories in the social warehouses continued to fall last week and are currently almost 50% lower than a year ago. Compared to the previous month, stocks fell by about 16%. This indicates strong demand from the Chinese downstream industry.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.