Aluminium inventories fall in July after six months

Aluminium inventories in the Asian region declined in July after a gap of six months. Inventories were 3,83,000 tonne in June (3,71,000 tonne in June 2005), but last month they slumped to the 3,79,000 tonne level.

In July last year, the region's aluminium inventories were at an even higher level of 3,85,000 tonne, according to according to the London-based International Aluminium Institute (IAI). The Asian region includes India, Japan and Indonesia.

The recent fall in the metal's prices revived demand and, hence, the decline in inventories.

Aluminium prices are currently in the $2,455 a tonne range on the London Metal Exchange compared with the peak of $3,270 on May 11. At the beginning of 2006 too, prices were at lower levels of $2,270 a tonne.

Analysts said the meltdown in aluminium prices on the LME in the last few months has led to some signs of revival of demand from user industries.

Aluminium production in the Asian region stood at 2,95,000 tonne in July against 2,74,000 tonne in the same month last year.