Japan Primary Al Quay Inventory Decreases for 4 Straight Months

Primary aluminium inventory at Japanese quays represented decrease for 4 straight months. The total quay inventory decreased by 14.8% or 35,800 tonnes to 206,700 tonnes at the end of June from a month earlier, according to a trader source. The inventory decreased by 12.4% to 106,900 tonnes in Yokohama, by 18.7% to 87,000 tonnes in Nagoya and by 8.6% to 12,800 tonnes in Osaka. Domestic ingot users minimized the procurement during April-June while some traders enjoyed active small-lot ingot sales.

A concerned source indicated domestic ingot supply becomes tight when quay inventory represents below 200,000 tonnes. Primary aluminium quay inventory approached 375,000 tonnes at the end of February 2009 when the actual demand plunged under economy deterioration. The inventory shrank to around 200,000 tonnes in next 4 months.

Japanese primary aluminium import was 71,272 tonnes in May, down by 56% from a year earlier, according to Ministry of Finance. The import showed below 100,000 tonnes for 4 straight months. Domestic ingot consumers, including aluminium re-rollers, minimized the procurement largely during April-June. The consumers are said to increase the purchasing volume by 20-30% for July-September compared with April-June thanks to the progress of inventory adjustment and the slow recovery of their output.