Japan's aluminum reserves hit records

Aluminum in three major Japanese ports rose for the tenth straight month, hitting a record high in late January as strong imports met cool domestic demand.

Aluminum stocks in January rose in Yokohama, Nagoya and Osaka by 8.8 percent to 449,800 tons. This broke the previous record for December. A high level of imports of aluminum products continues to flow to Japan from China. China's aluminum exports rose about 19 percent last year, a trend that analysts say will continue in 2015 due to low domestic prices compared to international markets.

Japan's imports of aluminum bars for 2014 rose 16 percent from a year earlier to 1,698,000 tons, the highest since 2010. Imports of aluminum alloys rose 11 percent to 1,125,000 tons, the highest since 2008. January stocks are also overestimated due to the early arrival of some cargo, which was due to arrive in Japan in February, as well as weak domestic demand, according to traders.

At the same time, production of rolled aluminum from Japanese manufacturers fell 2.9 percent in December from a year earlier to 160,731 tons. The monthly decline continues into 2015, reflecting slow demand in the vehicle and home construction sectors. Due to high inventories, some Japanese companies are cutting production to cut their inventories until March 31, the end of the current fiscal year, according to the Japan Aluminum Producers Association.