Demand Rush for Japan Al Can Material

Japanese light metal rolling makers operate the can material plant at full capacity. They try to meet growing demand when domestic can makers and beverage makers build inventory preparing for lower power availability in summer. The light makers’ operation rate could decrease in and after July due to the lower power availability.

An official of light metal reroller said the can material operation rate is more than the capacity. Japanese aluminum can material shipment decreased by around 4% to around 37,500 tonnes in April from a year earlier, according to Japan Aluminium Association, while the aluminium flat products’ shipment decreased by more than 10%.

The can material demand increases when domestic can makers and beer and beverage makers normalize the operation from the damage by the major earthquake. Some industry sources estimate can demand increases due to limited availability of polyethylene terephthalate (PET) bottle caused by the quake damage.

A source in can maker said they try to build inventory before they have to reduce the power consumption by 15% in peak time in July-September from same period of 2010. Japanese manufacturers try to reduce the power consumption by 25% to contribute to the power saving policy.

The can material demand is expected to decrease in July-September after the full capacity operation in April-June. Furukawa-Sky Aluminum estimates the can material sales will decrease by 6% to 119,000 tonnes in the first half year through September due to basic demand decrease and cancelation of major events after the quake.