Aluminum Stockpiles in Japan Decline to 14-Year Low

TOKYO, Oct. 14 -- Aluminum stockpiles in Japan dropped to the lowest level in at least 14 years in September as shipments increased to the automobile and machinery industries.

    Inventories in Yokohama, Nagoya and Osaka ports dropped 12 percent to 169,900 metric tons as of Sept. 30 from 192,200 tons at the end of August, according to Marubeni Corp. The volume was the smallest since the company, Japan's largest importer of the light metal, began compiling data in June 1995.

    Manufacturers boosted purchases to expand production as government incentives raised sales of energy-efficient cars and appliances. Toyota Motor Corp. and Honda Motor Co., Japan's two largest carmakers, led the first gain in the nation's automobile sales in 13 months in August as government energy-efficiency incentives increased demand for their hybrid models, industry data showed.

    Japan's shipments of aluminum rolled products fell 19 percent from a year earlier to 138,920 tons in August, the slowest pace of decline in nine months, the Japan Aluminium Association said Sept. 28.

    Aluminum Inventories in Japan reached 374,600 tons at the end of February, the highest level since September 1998, as demand slumped amid the recession. Volumes then declined as Japanese trading companies and aluminum rolling mills pared purchase volumes under supply contracts this year on anticipation of worsening demand.

    (Source: Bloomberg)