Japan Al Products Demand to Increase by 3% to 4MT in F2012

Demand for aluminium products in Japan is forecasted to increase by 3.1% to 4.018 million tonnes in fiscal 2012 starting in April compared with the previous fiscal year, announced Japan Aluminium Association on Wednesday. The annual demand would represent first year-to-year plus since fiscal 2010 and reach 4 million tonnes for the first time since fiscal 2007. The demand is expected to increase especially for automobile industry.

Domestic market demand is forecasted to increase by 2.7% to 3.788 million tonnes. Major items such as rolled products, casted products and die casting products would increase on year-to-year basis along the recovery of car industry. Consumption of aluminium products could increase along with Japanese government’s second subsidy program for environment friendly cars, automakers’ releases of new vehicles or model changes.

Demand for export is forecasted to increase by 9.3% to 230,100 tonnes. In fiscal 2011, the export is estimated to decrease by 13.6% from the previous fiscal year since Japanese aluminium manufacturers put supply priority to domestic users just after the Japan Earthquake while offshore demand decreased due to flood disaster in Thailand or negative effect of economic growth slowdown in China and Southeast Asia. In fiscal 2012, the export would rebound strongly from the temporary drop.