Japan Al Construction Materials Demand to Rise by 2.9% in F2010

Japan Sash Manufacturers Association announced on Friday Japanese demand of aluminium construction materials increases by 2.9% to 355,000 tonnes in fiscal 2011 starting April from fiscal 2010. The association expects the demand increases for 2 years in a row when stimulus package supports the demand and private sector also increases the investment to plants and condominium. However, the demand could be revised due to the major earthquake.

The demand increases by 2.5% to 130,000 tonnes for sash of wooden house in fiscal 2011 from fiscal 2010 when housing start increases by 3% to 850,000 units in fiscal 2011 from fiscal 2010. The association expects the stimulus package encourages new hosing creating demand for sash and exterior when the government reduces tax on housing loan and donation tax along with housing eco-point system.

The building sash demand increases by 3.4% to 90,000 tonnes in fiscal 2011 from fiscal 2010 when nonresidential building start will increase by 3.7% to 73 million square meters in fiscal 2011 from fiscal 2010. The association expects better condominium sales encourages new building while companies’ capital expenditure increases for plant and facility.

The aluminium construction materials demand increases by 4.2% to 345,000 tonnes in fiscal 2010 from fiscal 2009. The demand is higher than 333,000 tonnes of estimated by the association as of March 2010. The demand increased for all applications except for building sash.

The major quake would stop housing activity in eastern Japan for months while the rebuilding demand from the quake damage is still unknown. The association will revise the demand outlook in 6 months to release.