Japan Al Inventory Declines 17.1% in May

Japanese primary aluminium ingot inventory at quay decreased by 17.1% or 50,000 tonnes to 243,000 tonnes at the end of May from April, which declined for 3 months in a row and became the adequate level, according to a trade firm source. The inventory at Yokohama decreased by 14.1% to 122,000 tonnes at the end of May from April and it decreased by 21.9% to 107,000 tonnes at Nagoya while at Osaka increased by 7.7% to 14,000 tonnes. The inventory seemed to decrease due to lower purchase by primary aluminium ingot users and the order receipt for export to China.

Japanese export of primary aluminium ingot to China remains low due to the stop of arbitrage since the end of April. A concerned source expects Japanese aluminium inventory at quay continues declining until the end of June. The inventory would decrease when the inventory adjustment by users progressed and the demand of aluminium products has bottomed out. At the same time, the users reduce significantly the purchase during June.