Japan Al Demand Hits First Drop in 2-Years for 1H of 2011

Japanese primary aluminium ingot and primary processed aluminium demand decreased by 4.6% to 1.86 million tonnes in January-June from same period of last year, which decreased for the first time in 2 years, announced by Japan Aluminium Association on Friday. The demand decreased mainly for transportation after the major earthquake in March.

The demand for transportation decreased by 15.8% in January-June from same period last year due to output suspension by car makers after the quake while aluminium re-rollers restarted the operation earlier than car makers. The export also decreased by 15.8% for export when Japanese aluminium makers tried to secure the supply for domestic users under the quake damage.

On the other hand, the demand increased by 9.7% for civil works and building in January-June from same period last year due to new housing starts rebound and subsidy for eco-friendly housing.