LME Al Stock over 2.42 Million T Increases from 300,000 T in Dec

Primary Aluminium stock at warehouses designated by London Metal Exchange increased to 2.42 million tonnes after late December when was over 2 million tonnes. The stock is increasing not only in USA but also in Europe and Asia, reflecting the world wide plunge in aluminium demand

Aluminium stock has exceeded 2 million tonnes in third week in December for the first time in 14 years. And then, the stock increased to 2.3 million tonnes at the end of 2008 when the suppliers, traders and users sold the aluminium for liquidation. The stock keeps rising, and increased to 2.4 million tonnes level in the last half of previous week. Aluminium supply and demand continues loosening due to the house building and automobile stagnancy.

Some sources pointed out the warehouses designated by LME at Detroit or at Baltimore, USA approaches to the limit of the capacity while a trader source said, LME warehouses in North America have enough capacity and the stock of aluminium probably keeps increasing mainly at warehouses, which hold the less volume.

The stock is increasing slightly not only in USA but also in Asia and in Europe. The stock at Singapore and at Rotterdam is the high 300,000 tonnes level. Aluminium supply and demand balance is loose though the major smelters reduced the output more.