Japan July aluminium shipments rise on hot weather
Thursday, Aug 28, 2008
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TOKYO, Aug 27 (Reuters) - Japanese shipments of aluminium products rose 2.2 percent in July from a year earlier as hot summer weather boosted demand for drink cans, with strong exports and robust demand in the auto sector helping the overall trend.
Shipments of aluminium mill products -- flat-rolled and extrusions -- rose to 207,523 tonnes in July, up for the third straight month, the Japan Aluminium Association said.
Aluminium product output rose 2.0 percent to 208,444 tonnes in July from a year earlier.
"Hot temperatures pushed up demand for aluminium cans," an official at the association said.
"Other sectors like auto showed strong gains, but there are uncertainties about the outlook. Although the latest data still showed that exports and demand in auto were higher."
The auto sector's demand for flat-rolled, which accounts for nearly 12 percent of overall flat-rolled demand, rose 6.2 percent from a year earlier to 15,083 tonnes in July.
But the outlook for overall demand for aluminium remains weak as automakers cut their production plans and consumption in the construction sector stays sluggish, metal traders said.
Carmakers like Toyota Motor Corp have cut output plans on slowing demand in the United States and other major markets.
Shipments of extrusions, which are widely used for aluminium window frames in the construction sector, fell for the 18th consecutive month.
Japan's construction sector has been hit by tighter building rules and an economic slowdown.