Low Flat Aluminium Sales, High Copper Tube Shipment at Japanese Re-rollers in 1H F2011

Among Japanese major five aluminium re-rollers, Furukawa-Sky Aluminum Corp. and Nippon Light Metal posted lower consolidated recurring profit in the first half of fiscal 2011 (April-September 2011) than they had forecasted. Aluminium product shipment sharply decreased for electronic fields during July-September, such for semiconductor manufacturing equipments, liquid crystal panel manufacturing equipments or electrolytic capacitors. Users’ demand also weakened when primary aluminium market price, the indicator, lowered.

Meanwhile, Kobe Steel’s aluminium & copper business unit and Sumitomo Light Metal Industries gained higher half-year recurring profit than expected thanks to sales increase of copper alloy fabricated products, mainly copper tube.

For April-June 2011, Furukawa-Sky Aluminum’s aluminium plate shipment significantly decreased for automotive body sheets and panels after the Japan Earthquake while can material shipment increased since can makers put the orders ahead of electricity usage regulation in summer. For July-September, automotive demand turned upward but aluminium plate sales decreased for semiconductor and liquid crystal panel manufacturing equipments. Orders from domestic wholesalers also declined when primary aluminum market price weakened.

Nippon Light Metal also posted lower half-year recurring profit than estimated due to sales volume down for semiconductor and liquid crystal panel manufacturing equipments or aluminium electrolytic capacitors.

On the other hand, Kobe Steel’s aluminium & copper business unit enjoyed sales volume increase of copper tube by 11% to 44,000 tonnes for April-September from the same period of fiscal 2010 although sales volume of rolled aluminium products decreased by 4% to 140,000 tonnes. Sumitomo Light Metals posted 14% year-on-year lower operating profit at 8.7 billion yen for rolled aluminium product unit for April-September while operating profit expanded to 10 times at 1 billion yen for copper alloy product unit including copper tube.