Japan Primary Aluminium Ingot Price to Drop in April-June

Japanese primary aluminium ingot price is likely to decrease to a half level in April-June from a half year ago. The price is impacted by lower international market and higher yen rate. The ingot price, which impacts on rolled aluminium market price, could decrease to less than 200 yen per kilogram.

Aluminium ingot market price keeps low level at less than US$ 1,400 per tonne at London Metal Exchange. LME inventory is reaching 3 million tonnes. The oversupply condition is expected to take more time due to slow demand despite of the production cut by smelters. Foreign exchange rate of yen keeps higher for dollar due to uncertainty for US economy.

Japanese rolled aluminium demand is slow due to very slow activity of automobile and other industry. The demand is likely to keep slow when the users try to reduce the inventory.