Japan Al Re-rollers Operating Rate Keeps Steady in February

Japanese aluminium re-rollers’ operating rate was averaged at 81.3% in February, improved by 2.6 percentage points from a year earlier, according to Japan Aluminium Association. Operating rate improved for aluminium extrusions thanks to the favorable demand from car industry and the positive effect of re-rollers’ capacity optimization. Meanwhile, operating rate represented almost as flat as a year earlier for flat products.

Demand for aluminium extrusions showed favorable thanks to the governmental subsidy program for truck, bus and taxi launched in October 2010. The export was also steady mainly for Southeast Asia. Meanwhile, the demand for aluminium architectural materials hit bottom along with recovery of new housing starts in Japan.

Operating rate for aluminium flat products returned to above 80% since December 2010 while the year-on-year plus range was narrower than in January. Car related demand declined after the end of another governmental subsidy program for eco friendly cars. Demand for can materials was relatively firm.