Lower Japan Aluminium Re-rollers Operating Rate in January

Japanese aluminium re-rollers’ operating rate was averaged at 75.8% in January, which improved by 3.8 percentage points from a year earlier while the rate decreased to less than 80% for the first time in 5 months, according to Japan Aluminium Association. The operating rate was low for flat products due to demand slowdown for cars and can materials.

The operating rate was averagely 76.3% for aluminium flat products in January. The rate improved by 1.4 points from a year earlier while the rate dropped from 84.7% in December 2010. The car related demand slowed down due to the end of governmental subsidy program for eco friendly cars. The demand for can materials was also weak. Meanwhile, the export demand maintained steady mainly for Southeast Asia.

The operating rate averaged 75.1% for aluminium extrusions, which was 7.2 points higher from a year earlier. On the contrary to flat aluminium products, the car related demand was relatively favorable. The demand was sustained by another governmental subsidy program for trucks, buses and taxis started in October 2010. Meanwhile, the demand for aluminium architectural materials hit bottom along with recovery of new housing starts in Japan.