Japan Aluminium Can Demand to Recover in 2007

Japanese domestic demand of aluminium beverage can is estimated to increase by 0.9% to 18.53 billion cans in 2007 from 2006, which would exceed previous year’s result for the first time in late 3 years, announced by Japan Aluminum Can Recycling Association on Thursday. Aluminium can demand is expected to keep steady for beer and to recover slightly for bottle can this year.The Association estimated aluminium beverage can demand was 18.36 billion cans in 2006, down by 0.4% or 70 million cans from 2005. The demand increased for beer including low-molt beer and other miscellaneous sparkling alcohol, while decreased for non-alcohol beverages. PET bottles were used more for non-alcohol beverages such as mineral water.In 2007, 4.2 billion aluminium cans would be used for beer, 3.3 billion cans for low-molt beer and 3.8 billion cans for other miscellaneous alcohol beverages. Aluminium can will represent 65-70% of beer container in Japan in 2007, almost as flat as 2006. Can demand is expected to increase following fine sales of miscellaneous sparkling alcohol.Aluminium can demand is expected to recover for non-alcohol beverages in Japan this year. Competition became severer between aluminium bottle can and PET bottle last year when primary aluminium price surged up. In 2007, 2.3 billion cans would be used for non-alcohol beverages.In USA aluminium beverage can demand was 101.4 billion cans per year in 2006, up by 2.3% from 2005. The demand exceeded previous year’s result for the first time in 2 years due to warm winter and active sales of healthy drink.