Japan Primary Al Quay Inventory Turns to Increase in August

Primary aluminium ingot inventory at Japanese quays increased by 19,900 tonnes to 191,200 tonnes at the end of August from a month earlier. The inventory represented the first increase since February 2009. Japanese aluminium re-rollers seemed to increase ingot procurement in response to slight recovery of domestic demand for aluminium fabricated products. Domestic supply and demand balance of primary aluminium ingot is not tight. A concerned source said the quay inventory may continue increasing with re-rollers’ slight output recovery.

The quay inventory increased by 2.1% to 94,500 tonnes in Yokohama at the end of August from a month earlier, according to Japanese trader. The inventory expanded by 30.3% to 84,700 tonnes in Nagoya while the stock kept flat at 12,000 tonnes in Osaka. Japanese aluminium re-rollers were likely to increase ingot procurement by 20-30% for July-September compared with the previous quarter.

Domestic demand for rolled aluminium products bottomed out but the recovery pace seems slowing down. Demand for aluminium can material is expected to decrease after summer. Construction related demand still stays stagnant. As to automotive parts, domestic makers are concerned about slowdown of car replacing demand in Japanese and US markets.

Meanwhile, primary aluminium ingot is scheduled to arrive at Japanese quays at 100,000 tonnes or more per month along the contracts for August-September shipment. Japanese quay inventory is expected to increase slightly in a next few months.