Japan Al Re-rollers Concerned with Slower Construction Market

Japanese aluminium re-rollers are concerned that their sales and profits would become worse in fiscal 2007 ending March 2008 under the influence of the revision of Japanese building standard law. Domestic new housing starts were 63,076 units in August, down by 43.4% from a year earlier, according to Ministry of Land, Infrastructure and Transport. Domestic shipment of aluminium plate and extrusion for constructions decreased by 10.4% in August from a year ago, announced by Japan Aluminium Association. The impact has become severer in 4 months since the law revision.Domestic new housing starts represented year-to-year down for 2 months in a row. The decreasing ratio was especially wider around Tokyo than around Nagoya or Osaka. New housing starts decreased by 51.8% around Tokyo in August from a year earlier and by 71.7% especially for condominiums in the region.Aluminium re-rollers for construction materials, such as sashes and shutters, are making efforts to smooth building certifying applications by uploading needed certifications on their websites. However, new housing starts maintain slow. Aluminium re-rollers might be suffered from worse sales and profits through fiscal 2007 if domestic construction market does not recover.Ministry of Economy, Trade and Industry started to provide a special consultation service or a safety net fund especially to mid- and small-sized companies. However, smooth building certifying applications seems most effective basically and Japanese government should improve an operation system of the new building standard law.