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Japan end-Dec aluminium stocks up about 7 pct m/m

Friday, Jan 15, 2010
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* End-Dec stocks down 38.9 pct yr/yr * Demand steady, but worries linger for new financial year TOKYO, Jan 14 (Reuters) - Aluminium stocks held at three major Japanese ports rose 7.09 percent in December compared to a month earlier, although there has been steady demand for the metal, trading house Marubeni Corp said on Thursday. "There has been a steady flow of supply from stocks," a Marubeni official said. Japan's demand for aluminium, widely used in packaging and transportation, has returned after falling sharply last year as manufacturers cut production due to the economic crisis. Demand is now back to about 80 percent of the typical year, although appetite in the construction sector, a major consumer, remains in a slump. Stocks came to 193,300 tonnes at the end of December, down 38.9 percent from a year earlier. The official added, however, that metal industry officials remain worried about aluminium demand from April, when the new financial year begins, as recent economic data has suggested that Japan's recovery is still fragile. The country's core machinery orders tumbled to a record low in November, adding to government fears of a return to recession that could heighten the need for yet more fiscal stimulus spending. Aluminium stocks fell to 169,900 tonnes at the end of September, marking their lowest level since Marubeni began taking records about 14 years ago. Marubeni collects data from the key ports of Yokohama, Nagoya and Osaka. Following are details of Japanese aluminium stocks, including month-on-month and year-on-year comparisons (in tonnes): Yokohama Nagoya Osaka Total Dec 31 86,700 92,600 14,000 193,300 Nov 30 81,500 87,000 12,000 180,500 Oct 31 81,600 76,600 13,000 171,200 Sept 30 84,600 73,300 12,000 169,900 End-Dec 2008 145,800 157,500 13,000 316,300 (Reporting by Miho Yoshikawa; Editing by Joseph Radford)

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