TOCOM to Delist Primary Aluminium

Tokyo Commodity Exchange (TOCOM) announced on Tuesday it halts outcry trade for primary aluminium in October 2010, which represents delisting the metal. Central Japan Commodity Exchange already stopped aluminium trade. Aluminium trade was very thin recent years. TOCOM, which changed itself from membership organization to stock company last year, tries to improve the profitability. The aluminium listing, which started 13 years ago despite of Japanese aluminium industry’s strong opposition, is finally terminated.

London Metal Exchange has major share for aluminium futures trade. Japan increased the position as major consuming country of primary aluminium after Japanese makers withdrew from domestic aluminium smelting. Japanese commodity trading industry pushed the aluminium listing in Japan while Japanese aluminium makers opposed to the plan.

The aluminium listing started the test in April 1997 and started commercial operation in April 2000. The aluminium trade had certain volume at first but decreased continuously despite of TOCOM’s effort. The trading volume was almost zero recently. TOCOM indicates potential listing of copper and other nonferrous metals while the exchange also eyes restarting of aluminium listing.