Chinese Strong Demand Reduces JPN Al Quay Inventory in March

Primary aluminium ingot inventory at Japanese quays represented the first month-to-month decrease since June 2008. The quay inventory at the end of March totaled 334,600 tonnes, decreasing by 40,000 tonnes or 9% from a month earlier. The inventory decreased by 5.5% to 163,400 tonnes in Yokohama, by 14.3% to 160,000 tonnes in Nagoya and by 25.3% to 11,200 tonnes in Osaka.

Japanese aluminium consumers, including re-rollers, decreased ingot procurement largely for January-March along stagnant sales of aluminium rolled products. Japanese trading houses also decreased spot deals and adjusted their inventories. As a result, Japanese primary aluminium ingot import dropped by 41% to 90,002 tonnes in February from a year earlier.

Under the condition, Japanese aluminium consumers and traders are currently selling their ingot inventories to China. Primary aluminium price at London Metal Exchange, the global indicator, is now cheaper by more than US$ 300 than the price at Shanghai Futures Exchange. Chinese aluminium users are aggressively purchasing offshore ingot.