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Monday, July 23, 2007

Demand for aluminum in Japan forecast up

TOKYO -- Japanese market demand for secondary aluminum in fiscal 1999 starting April 1 is forecast to be stronger than in the fiscal year ending this month, according to the Japan Aluminium Alloy Refiners Association.

Market demand in fiscal 1999 is projected at 1,405,300 tonnes, up 2.0 percent from 1,380,200 tonnes estimated for fiscal 1998. The fiscal 1998 figure represents a 5.3 percent decline from 1,502,651 tonnes in fiscal 1997, however, the association said.

The fiscal 1999 demand by area of use is: casting, 282,300 tonnes (compared with 273,500 tonnes in fiscal 1998), up 3.2 percent; diecasting, 680,700 tonnes (661,600 tonnes), up 2.9 percent; rolling, 326,000 tonnes (326,000 tonnes), unchanged; steelmaking, 84,700 tonnes (84,700 tonnes), unchanged; and other, 34,600 tonnes (34,400 tonnes), up 0.6 percent

Japanese exports of automobiles in fiscal 1999 are expected to see a decline because of increased Japanese production overseas. But on the positive side, the association said, sales of mini-cars are expected to increase in Japan, while the government's stepped-up public works projects are likely to put a stop to declining sales of trucks.

In the rolling sector, some recovery in demand for extrusions is anticipated. But demand for sheets is forecast to run level because an expected increase in demand from aluminization of automotive radiators will be negated by an encroachment on the can stock market by plastic bottles, the association noted.

Secondary aluminum demand for steelmaking use is forecast to be flat as domestic demand for steel is expected to be stagnant in both construction and manufacturing segments, coupled with a sharp drop in steel exports, the association said.