Japan Secondary Al Alloy Demand to Hit New Record in F2008

Annual demand for Japanese secondary aluminum alloy is forecasted at 1.87 million tonnes in fiscal 2008 starting April, increasing by 2.9% from estimated 1.82 million tonnes in fiscal 2007, announced by Japan Aluminium Alloy Refiners Association on Friday. Annual demand is expected to renew record for 7 years in a row. In F2008 Japanese export of completed automobiles and auto parts is expected to increase. Domestic demand for secondary aluminium alloy would follow the trend.Annual demand for Japanese secondary aluminium and aluminium alloy is estimated to increase by 0.2% year-on-year in F2007. Secondary aluminium was actively consumed for castings and die castings when Japanese export of completed vehicles and auto parts maintained strong.On the other hand, demand is estimated to decrease by 17.7% year-on-year for rolling products in F2007. Demand was impacted by slower new housing starts in Japan due to revision of building standard law in June 2007. Another factor was that some secondary aluminium smelters reduced production of RSI (re-melted scrap ingot) since material cost sharply soared mainly for UBC (used beverage can).In F2008, secondary aluminium and aluminium alloy are expected to be consumed at 1.14 million tonnes for die castings, up by 3.9% year-on-year, while 340,700 tonnes for castings, up by 2.4%.