Japanese Aluminium Re-rollers’ Operating Rate Upturns in F2010

Japanese aluminium re-rollers’ operating rate was averaged at 83.7% for twelve months of April 2010-March 2011, which represented first year-on-year improvement in recent 4 business years, according to Japan Aluminium Association. The average operating rate improved by around 10 percentage points for extrusions. This wide-range rebound contributed to the total operating rate improvement though the monthly average operating rate dropped by around 12 percentage points for flat products in March 2011 due to Japan Earthquake.

The operating rate for extrusions was averaged at 78% for April 2010-March 2011, improved by 11.5 points from the previous business year. The operating rate exceeded 70% for the first time since fiscal 2008. The operating rate for flat products was averaged at 87.7%, rebounding after 2 business years.

Japanese aluminium re-rollers progressed optimization of their extrusion plants when oversupply condition has continued in recent years and the domestic demand has even declined after Lehman Shock. As for flat products, the re-rollers’ output increased in the first half year of fiscal 2010 especially for automobiles along Japanese government’s incentive program for eco friendly cars. Export also increased for China and Southeast Asia.

In March 2011, the total operating rate was averagely 84.2%, down from 100.2% in March 2010. Both makers and users of flat aluminium products were attacked by Japan Earthquake and impacted by TEPCO’s electricity outage plan.