LME Al Stock Tops 4 Million tonnes

Aluminium ingot inventory at warehouses registered to London Metal Exchange exceeded 4 million tonnes on Tuesday when the stock increased by more than 120,000 tonnes from previous day. The stock increased by 53,775 tonnes at Detroit, USA, by 20,675 tonnes at Gwangyang, South Korea and by 33,250 tonnes at Tyne & Wear, UK. Japanese trading firm source expects the supply balance takes more time to get normal when the oversupply is accelerated due to very slow demand.

LME stock surged when traders and producers deliver large amount of ingot to the warehouses. The oversupply is expanded due to very slow demand while the major smelters are in wide production cut.

The stock decreased at Singapore and South Korea in March and April when Chinese buyers purchased ingot from Asia, Middle East and Russia. However, the Asian ingot inventory turned into increase after Chinese buyers got away from the market.

Some Japanese industry sources said the suppliers should expand the production cut drastically. LME aluminium market price stays in US$ 1,500-1,550 per tonne level when the price already decreased to the low level as production cost or marginal loss making level.