Japan Primary Al Quay Inventory Hits Record Low in July

Primary aluminium ingot stock at Japanese quays totaled 171,300 tonnes at the end of July, down by 35,400 tonnes (17.1%) from a month ago. The quay stock hit the lowest volume since the data count started in 2001, according to a concerned source. Japanese aluminium re-rollers largely decreased ingot purchasing volume from May to mid June for inventory adjustment. Domestic demand and supply are balanced despite of low inventory. Demand for primary aluminium still maintains stagnant.

Quay inventory decreased by 11.8% to 94,300 tonnes in Yokohama at the end of July from a month earlier, down by 25.3% to 65,000 tonnes in Nagoya and by 6.3% to 12,000 tonnes in Osaka.

The record bottom was 177,000 tonnes at the end of November 2007. It was generally said that domestic demand and supply balance of primary aluminium becomes tight when quay inventory decreases to below 200,000 tonnes. However, several Japanese traders indicate present demand and supply are balanced when domestic demand is lower by 20% at least than the peak in 2007. Most users restarted ingot procurement as much as current consumption for July shipment. Shrinkage pace of quay inventory is likely to slow down.