Japan Apr aluminium stocks fall 12.7 pct on exports

TOKYO, May 15 - Japan's aluminium stocks fell month-on-month in April for the second straight month, further receding from a 10-year high, as exports to China jumped on higher metal prices there. But traders said domestic demand for aluminium remains weak, hurt by output cuts from automakers, a top consumer of the metal together as well as from the construction and packing industries. "The decline can be attributed to exports to neighbouring countries, such as China, and less imports," said an official with Marubeni Corp <8002.T>, which provides the data, said. Aluminium stocks held at three major Japanese ports amounted to 295,600 tonnes at the end of April, down 43,000 tonnes or 12.7 percent from the previous month, trading house Marubeni said. It is the lowest figure since November. To see aluminium port stocks, click on: http://graphics.thomsonreuters.com/059/JP_ALIMP0509.jpg Stocks held at these ports ballooned to 374,600 tonnes at the end of February, the highest figure since September 1998, but fell a month later as Japan bought less of the metal due to a slump in demand, while stepping up exports. Marubeni compiles data from the ports of Yokohama, Nagoya and Osaka. An official with an end-user of aluminium said they may have seen the worst of the demand slump in February or March. "Many firms really worked hard on cutting inventories, and I think we are beginning to see the results of that now," he said. He added that aluminium demand for some items such as cans has been steady, prompting his firm to look at buying fresh metal, after months of drawing down stocks. "I think, however, that we have still some ways to go in terms of anticipating solid demand. We have just managed to work down some stocks," he said. Following are details of Japanese aluminium stocks, including month-on-month and year-on-year comparisons : Yokohama Nagoya Osaka Total Apr 30 142,300 140,300 13,000 295,600 Mar 31 163,400 164,000 11,200 338,600 Feb 28 172,800 186,800 15,000 374,600 Jan 31 171,500 177,700 14,000 363,200 End-Apr 2008 93,300 99,700 14,000 207,000