Japanese aluminum inventories fall as banks buy it up

The stock and finance trade is investing in Japanese aluminum again and republicans in the US House unveiled an $8.1 billion infrastructure bill.

Big Banks Investing in Aluminum Again

Aluminum stocks at major Japanese ports fell for the first month in more than a year in June as western banks started snapping up metal in Asia after spot premiums fell to two-year lows.

Aluminum stocks held at three major Japanese ports fell 0.5% to 499,900 metric tons at the end of June from a month earlier, trading house Marubeni Corp. said on Wednesday. It was the first decline since March last year.

Prior to June’s fall, stocks had risen to record levels over several months due to rising exports from China and lackluster Asian demand.

Republicans Unveil Infrastructure Bill

Republicans in the US House of Representatives on Monday unveiled an $8.1 billion plan to fund highway and rail transit projects through the end of 2015, paid for by extending an airport security fee increase and tax rule changes.

Congress faces a July 31 deadline to renew federal transportation spending authority and avoid a major slowdown in road construction projects nationwide.

The five-month funding extension would replenish the Highway Trust Fund for five months. It was introduced by House Ways and Means Committee Chairman Paul Ryan (R.-Wis.) and House Transportation Committee Chairman Bill Shuster (R.-Pa.).

Both Republicans and Democrats have said they would prefer a longer, six-year transportation bill, but lawmakers have not been able to agree on a funding mechanism for the nearly half-trillion dollar cost.