Japanese Aluminium Stocks Reach Two-Year High In July

Japanese Aluminium Stocks Reach Two-Year High In July

Japanese market sources said last week that the country’s aluminium stocks at the country’s trio of major port warehouses rose to a two-year apex of 310,400 metric tons at last’s month’s end.

Per Japanese trading house Marubeni, the record is a rise of 1.1 percent over the prior month’s total inventory on hand of 306,900 metric tons. The total is the highest ever since exactly two years ago, when that month saw an inventory total of 305,900 metric tons.

Marubeni said that stocks in Yokohama totaled 156,600 metric tons, an increase from last month’s total of 151,700 metric tons. Nagoya’s port warehouse housed 138,800 metric tons, falling from June’s total stock on hand of 140,200 metric tons. Osaka’s stocks held steady at 15 thousand metric tons.

Unnamed sources who spoke to industry media chalk up the highs to the Trump tariffs on aluminium and the harsh sanctions levied on Russian aluminium titan U.C. Rusal in the spring. In addition, Japan has suffered domestic demand struggles in recent months, especially in the beverage can sector. Though beer consumption is down slightly, polyethylene terephthalate (PET) is making inroads in some breweries, slicing down aluminium’s market share. Additionally, demand for aluminium sheet in the production of coffee beverage containers is also retreating.

According to anonymous sources, a pair of end users chose to suspend quarterly and monthly buy tenders on account of a significant stock of aluminium already on hand.