High Pace Recovery of Japan Automotive Light Metal Demand

Japanese rolled light metal demand recovers at higher pace than expected for automotive parts while the demand dropped after the major earthquake. Some light metal makers expect the production in July reaches the level as former plan before the quake. The demand for body panel, frame and heat exchanger increases when domestic automakers accelerate the normalization of the production.

A major light metal maker’s production was around 50% for automobile applications in May compared with former plan. The maker expects the production reaches 70-80% level in June and 100% in July.

Another maker recognizes aluminium flat and extrusion demand recovers in June higher pace than expected. The maker now expects the production for automobile recovers normal level in second half of fiscal 2011 ending March 2012 while the firm expected the normalization would be fiscal 2012.

Toyota Motor’s domestic production reaches 90% level in June compared with normal level. The firm expects normal level production in July when the parts supply recovers at higher pace than expected. The firm increases the production later the year to cover production loss in earlier the year.

However, domestic light metal demand is sill slow for production facility of automobile. The demand would take more time to recover normal level.