Higher Japan Aluminium Rail Car Demand

Aluminium demand is firm for rail car in Japan when Central Japan Railway Company and West Japan Railway Company renew the rail cars to new aluminium body N700 series for Shinkansen super express train. The demand supports aluminium industry when the light metal demand is slow for other applications.

Japanese rolled aluminium shipment increased by 24.8% to 15,653 tonnes for rail car in 2008 from 2007 while the total rolled aluminium shipment decreased by 4.2% to 2.225 million tonnes, according to Japan Aluminium Association. The rail car demand grows after 6.8% increase in 2007 from 2006.

The association reported aluminium rail car production increased by 41.5% to 736 cars in fiscal 2007 ended March 2008 from fiscal 2006. Shinkansen represented near 50% of the production leading the growth. Shinkansen demand is expected to keep supporting aluminium demand when JR group increases N700 series rail cars.

Shinkansen demand could lift aluminium demand in longer term when Taiwan imports Japanese Shinkansen and other countries could import the system. Environmental friendly rail system could be preferred due to lower carbon dioxide emission than other transport.