Metalnewsnet 17 May ：

Reuters reported that Aluminium stocks held at 3 major Japanese ports fell in April as companies likely ramped up production ahead of a long holiday period and mopped up excess inventories.

Stocks stood at 190,500 tonnes at the end of April down 2,300 tonnes, or 1.2% from a month earlier data from trading house Marubeni Corporation showed. The monthly drop in stocks slowed from March when they fell 3.9% from February.

Marubeni collects data from the key ports of Yokohama, Nagoya and Osaka. Stocks held at the ports marked 10 year high at the end of February 2009 but then started falling and hit 169,900 tonnes at the end of September 2009, their lowest since Marubeni began keeping records about 14 years ago. The level of stocks in April was down 35.6% from a year earlier, reflecting that excess inventories have disappeared and that stocks were at appropriate levels.

An official at Marubeni said that "The fall in stocks last month was due to a rise in demand from end users, probably as they wanted to produce before the Golden Week holidays. The stocks are likely to hover around current levels. Domestic demand has been recovering steadily and the amount trading houses buy has also been rising. But it's unlikely that demand will spike up and bring inventories sharply down from current levels.

The global economic crisis reduced demand for the metal as automakers and other manufacturers slashed production after late 2008, but demand for aluminium has returned to about 80% to 85% of levels seen before the crisis.

Japan Aluminium Association data showed that Japanese shipments of aluminium products rose 50.3% in March from a year earlier to 186,714 tonnes, the fourth straight month of YoY climbs. That was up 13.7% from February, the second MoM gain but still 3.5% below levels in March 2009 before the global economic crisis hit demand.

( from Reuters)