Japan Flat Aluminium Makers’ Utilization Drops to 65% in January

Averaged operating rate of Japanese flat aluminium factories represented 64.9% in January, which lowered by 11.4 points from a year earlier and hit the lowest since 60.4% in March 2009, according to Japan Aluminium Association. The operating rate for aluminium extrusion products improved by about 8 points in January from a year earlier. The total operating rate lowered by 3.6 points to 72.2% in January from a year earlier, which represented year-to-year down for eleven straight months.

The operating rate for flat aluminium products had kept more than 70% since April 2009. The operating rate maintained high even in first half of 2011 when the Japan Earthquake occurred. Japanese can makers advanced aluminium sheet orders ahead of July-September due to electricity shortage in summer.

In the second half year, the demand deteriorated for flat aluminium products including can materials, printing boards and capacitors along with global economic slowdown. In October, Thai flood problem became serious. Some of flat aluminium users and aluminium re-rollers were forced to suspend their operations in Thailand and then Japanese export of flat aluminium products decreased.

Japan Aluminium Association analyzed negative impact of Thai flood eased in January but Japanese export of flat aluminium products decreased by 14.7% to 13,232 tonnes in January from a year earlier. The export maintained low volume.

Averaged operating rate for aluminium extruded products improved by 7.8 points to 82.9% in January from a year earlier, which represented year-to-year plus for four months in a row. The shipment has steadily recovered for automobile industry. The shipment also represented stable for construction fields while LIXIL Corporation has implemented alternate production of architectural materials in Japan since Thai site was damaged by the flood.