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Japanese aluminum stocks in May up by 3pct MoM
Edited by : AL CIRCLE
2 min read
Reuters reported that aluminum stocks held at three major Japanese ports at the end of May rose to 7 month high, reflecting inflows from delayed deliveries and also a rise in imports.
An official at trading house Marubeni Corporation said that aluminum stocks at the ports came to 225,400 tonnes at the end of May up 6,300 tonnes or 2.9% from a month earlier which collects data from the key ports of Yokohama, Nagoya and Osaka.
The stocks rose for the second month in a row after rising in April for the first time in 4 months. The May level was the highest since stocks stood at 225,800 tonnes in October.
The official said that a rise in aluminum stocks in Nagoya, central Japan, was due to a slight increase in imports from Australia, as well as deliveries delayed from April to May.
He said that output of aluminum products normally rises towards July and imports tend to rise, which was partly behind the buildup in stocks. But higher imports don't necessarily reflect stronger demand. While production of automobiles has begun to pick up output of beverage cans which had been front loaded is peaking.
We don't know how these two factors will balance out in the coming months. Given the uncertain domestic demand outlook it's likely that aluminium stocks will stay at current levels or may even rise in the coming months.
Japan, which has to buy nearly all the metal it needs overseas, annually imports about 2 million tonnes of primary aluminum widely used in products ranging from computers, planes and electronics to the food sector.
Toyota Motor Corporation has said that it expects to resume full production globally in November and its Japanese output is expected this month to recover to 90% of levels seen before the March 11 earthquake.
An official at trading house Marubeni Corporation said that aluminum stocks at the ports came to 225,400 tonnes at the end of May up 6,300 tonnes or 2.9% from a month earlier which collects data from the key ports of Yokohama, Nagoya and Osaka.
The stocks rose for the second month in a row after rising in April for the first time in 4 months. The May level was the highest since stocks stood at 225,800 tonnes in October.
The official said that a rise in aluminum stocks in Nagoya, central Japan, was due to a slight increase in imports from Australia, as well as deliveries delayed from April to May.
He said that output of aluminum products normally rises towards July and imports tend to rise, which was partly behind the buildup in stocks. But higher imports don't necessarily reflect stronger demand. While production of automobiles has begun to pick up output of beverage cans which had been front loaded is peaking.
We don't know how these two factors will balance out in the coming months. Given the uncertain domestic demand outlook it's likely that aluminium stocks will stay at current levels or may even rise in the coming months.
Japan, which has to buy nearly all the metal it needs overseas, annually imports about 2 million tonnes of primary aluminum widely used in products ranging from computers, planes and electronics to the food sector.
Toyota Motor Corporation has said that it expects to resume full production globally in November and its Japanese output is expected this month to recover to 90% of levels seen before the March 11 earthquake.
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