Japan Al Products Demand to Hit 21-Year Low in F2009

Japanese aluminium products demand will decrease by 10.3% to 3.401 million tonnes including export in fiscal 2009 starting April from estimated demand in fiscal 2008, announce by Japanese aluminium industry bodies including Japan Aluminium Association on Friday. The demand will decrease to less than 3.5 million tonnes for the first time since 1988 when the automobile demand keeps slow due to the inventory adjustment.

The industry expects the demand will decrease to 3.79 million tonnes in fiscal 2008, which decreases to less than 3.8 million tonnes for the first time in 10 years. The industry expected record demand a year ago but the demand drops sharply for automobile and construction since late 2008.

The industry expects the demand level is much lower in fiscal 2009 than the level in first half of fiscal 2008 while the demand could improve from the bottom in second half of fiscal 2008. The industry expects the inventory adjustment will complete for automobile materials and electric machinery in April-June. However, the rolled products demand will decrease by 8.9% to 1.671 million tonnes in the year from fiscal 2008.

The industry expects the castings demand will decrease by 10.8% in fiscal 2009 from fiscal 2008 when the automakers improve the operation rate and the demand hit bottom. The industry estimates the die-castings demand will decrease by 11.1%.

The industry expects the electric wire demand will decrease by 20% in fiscal 2009 from fiscal 2008 while the export decreases by 31.5%.