London 15/06/2016 - Stocks of aluminium ingot at Japan's major ports rebounded in May from April's 18-month low and rose for the first time since August, according to data compiled by Marubeni Corp.
Total inventories at the ports of Yokohama, Nagoya and Osaka rose a net 12,400 tonnes to 337,200 tonnes at the end of May from 324,800 tonnes - the lowest since September 2014 - in April.
The biggest move was in Nagoya, where stocks climbed 20,300 tonnes or 15 percent to 155,900 tonnes. Stocks also rose in Osaka, climbing 1,000 tonnes to 15,000 tonnes, while Yokohama inventories fell 8,900 tonnes to 166,300 tonnes.
Still, total stocks remain down 33 percent on the record high of 502,200 tonnes in May 2015.
Japan is one of the world's largest consumers of aluminium, meeting its 1.7 million tonnes of annual consumption almost exclusively via imports.
Spot premiums in Japan have come under renewed pressure in recent weeks, falling to around $85-95 per tonne on Tuesday, a six-and-a-half-month low, mainly due to an influx of Middle Eastern ingots.
Aluminium premiums for third-quarter supply contracts to Japan are currently under negotiation, with offers in a range of $98-105 range per tonne on a cost, insurance and freight (CIF) for delivery to major Japanese ports (MJP).
This is down from initial numbers of $100-110 last week and is lower than the $115-117 per tonne range concluded for second-quarter contracts.
(Editing by Mark Shaw)