LME Primary Al Inventory Jumps by 100,000t

Primary aluminium inventory held by London Metal Exchange (LME) jumped by 100,000 tonnes to 3.65 million tonnes on 14 April compared with 9 April, the last trading day before Easter holidays. LME participants seemed to realize surplus ingot into cash before the third Wednesday, LME’s delivery date. The inventory increased by 71,150 tonnes in Detroit, USA and by 13,425 tonnes in Singapore. The trend has continued that primary aluminium flows into China from LME designated warehouses in Asian region. But Japanese dealer source said Chinese strong demand seems to be slightly slowing down.

Primary aluminium supply has currently become more surplus against the global demand. The demand still maintains downward in North America from automobiles and residences. Meanwhile, aluminium purchasers are concerned about credit insecurity. Consequently the trend emerged that market participants brought surplus ingot to LME warehouses to realize cash.

LME primary aluminium inventory in Singapore had continued to decrease for late 2 weeks with strong demand from China. On 14 April, there was 18,775-tonne arrival and 5,350-tonne shipment in Singapore. As a result, the inventory expanded by more than 10,000 tonnes. A concerned source said primary aluminium shipment continued bound for China while ingot sales concentrated from India and Middle East.