Japan Aluminium Sash Demand to Increase in F2006

Japanese aluminium construction materials demand will increase by 0.7% to 456,000 tonnes including door and exteriors in fiscal 2006 starting April from fiscal 2005, announced by Japan Sash Manufacturers Association on Wednesday. The demand increases for the first time in 2 years though the volume remains under 500,000 tonnes for 5 years. The aluminium sash demand will increase by 0.6% to 179,000 tonnes for wooden house and by 0.8% to 121,000 tonnes for building. The demand is expected to increase slightly both for housing and building. The aluminium construction materials demand is expected to decrease by 5.1% to 453,000 tonnes in fiscal 2005 from fiscal 2004. The demand decreased for exterior and wooden house. The association expects the new housing start will increase by 0.1% to 1.235 million units in fiscal 2006 from fiscal 2005 due to the higher demand under expectation of higher interest rate and better economy though the house for rent is getting oversupply after the increasing supply in years. Under the market, the association expects higher aluminium sash materials demand. The association expects the demand of aluminium materials for nonresidential building also increases mainly for office and plant when the area of construction start is firm for structures other than wood. Under the market, the association expects the sash demand will turn into increase.