Japan's aluminium building material shipment down to 32-year-low

Japan's shipment of aluminium building materials was 50,087 mt in June, down 15.4% year on year and the lowest since 1975, Japan Aluminium Association data showed. Shipment figures include shipment of rolled aluminium products such as extrusion and sheet used for window frames, doors, wall exteriors and interiors. Construction sector is a major demand area, accounting for 25-30% of the rolled aluminium products demand in Japan. The association official attributed the shipment fall to slowing housing construction in the country and the increased imports of aluminium structural materials from Thailand and China. Japanese government data showed that May housing construction was down 10.7% year on year to 97,076 units. Floor space was also down, by 12%. Standalone houses, mostly designed for families of four or more, were down 12.7% to 28,848 units, and standalone houses for rent were down 7.8% to 41,264 units. Meanwhile, constructions of malls, warehouses and other non-dwelling units, that use more structural steel and less aluminium, increased. Finished or semi-finished aluminium structures imported from Thailand and China are beginning to have impacts. Japan has been importing 4,000-5,000 aluminium structures from Thailand and 1,500-2,000 mt from China monthly. The imports account for 10-15% of aluminium construction materials produced domestically, and they are penetrating the shrinking housing market. A spokesman for aluminium building material manufacturer Tostem added that substitution of aluminium by resin is also progressing in the colder parts of the country. Resin has superior heat insulation properties. MILLS SEE REVENUE OPPORTUNITIES OVERSEAS Increased imports of aluminium structures would not necessarily mean that revenues of Japanese rolling mills would decrease. Some mills are shifting their production bases of building materials to Thailand, to compete more cost effectively in the shrinking Japanese construction market. Mitsubishi Aluminium operates a 400 mt/month aluminium extrusion plant in the Samutprakarn province, and Tostem a 60,000 mt/year aluminium building materials plant in the Pathumthani province. Tostem makes one-third of the company's products in Thailand, and imports them back to Japan.