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

The country's overall aluminium stockpiles climbed to 1.25 million tonnes Monday almost double the level during the same period late year.

Mr Li Xun analyst said that On January 10th 2012, this stood at about 700,000 tonnes. The excessive supply in China's aluminium industry will continue at least for the H1 of the year.

He said that the aluminium price will fall by CNY 200 per tonne to CNY 300 per tonne during this week. That is considered a dramatic price drop in the market.