Japan Rolled Aluminium Shipment Shows First Y/Y Minus in 16 Months in March

Japanese aluminium re-rollers’ production decreased by 10.3% to 167,311 tonnes for flat products and extrusions in March from a year earlier while the shipment decreased by 8.5% to 170,878 tonnes, announced by Japan Aluminium Association on Wednesday. Both of the production and the shipment represented the first year-to-year minus in 16 months. Demand for rolled aluminium products, especially for flat products, steeply declined after Japan Earthquake.

Production of aluminium flat products represented the first year-to-year minus since November 2009 while the shipment maintained year-to-year minus for 3 straight months. Among the main applications, the shipment of aluminium can material decreased by 2.1% to 36,229 tonnes in March from a year earlier. The shipment for automobiles decreased by 25.2% to 10,159 tonnes and the shipment for electronic and IT equipments decreased by 56.6% to 2,335 tonnes.

Can material shipment decreased when some plants of beer makers and can makers were damaged by the earthquake. Flat aluminium shipment for automobiles decreased due to Japanese automakers’ shutdown. Aluminium re-rollers’ plants in North and East Japan also stopped for several days or a week after the earthquake. After the recommencement, re-rollers were suffered from low operation due to TEPCO’s planned power outage.

Production and shipment of aluminium extrusions represented year-to-year plus for 16 straight months. The shipment for construction market, which accounts for about 60% of the total shipment, kept year-to-year plus for 8 months in a row. Meanwhile, aluminium foil showed the first year-to-year minus for production in 5 months and for shipment in 17 months. The demand declined from capacitor makers and food industry after the earthquake.