London 22/08/2016 - Stocks of aluminium ingots at the three major Japanese ports (MJP) fell a further 3.4 percent in July to hit a 22-month low and approach the 300,000-tonne mark, according to data compiled by Marubeni Corp.
Total inventories at the ports of Yokohama, Nagoya and Osaka fell 10,900 tonnes to 305,900 tonnes at the end of July - the lowest level since September 2014 - from 316,800 tonnes in June. Stocks are also down 38 percent from July 2015 when they stood at 490,900 tonnes.
The biggest move was in Nagoya, where stocks fell 7,200 tonnes to 135,600 tonnes. Stocks also dropped 3,700 tonnes in Yokohama to 155,300 tonnes while stocks in Osaka were unchanged at 15,000 tonnes.
Japanese premiums have been under strong pressure recently, falling to $73-83 per tonne last week on the spot market, which is close to record lows, according to FastMarkets records. Third-quarter supply contracts for MJP delivery settled at $90-93 per tonne on a cost, insurance and freight (CIF) basis, down 21-22 percent on the second-quarter premium.
Japan is one of the world's largest consumers of aluminium, meeting its 1.7 million tonnes of annual consumption almost exclusively via imports.
(Editing by Mark Shaw)