Japanese aluminum shipments in 2009 may down by 11% YoY

Japan Aluminium Association said that Japan's shipments of aluminum rolled products are forecast to decrease by 11% YoY in next fiscal year to the lowest in 23 years because of a slump in demand from carmakers and machinery producers. According to the association, shipments, including exports and domestic business, may drop to 1.80 million tonnes in the year beginning April 1st 2009 from an estimated 2.03 million tonnes this fiscal year. It added that it is the third straight year of decrease and the volume would be the lowest since the year ended March 1987. Aluminum demand in Japan is deteriorating as it heads for its worst recession since 1945, spurring manufacturers to cut output and reduce their workforce. Exports plunged by a record 49.4% in February as deepening slumps in the US and Europe slashed shipments of Japanese cars and electronics. Mr Hiroshi Yao chairman of Japan Aluminium Association said that "Our industry will be in a tough situation again next fiscal year." He added that contraction in shipments may begin to slow in July as manufacturers will probably complete inventory adjustment by the end of June. Still, demand may not improve much as sales of cars, electronics and houses may not recover. Mr Yasuhiko Noguchi secretary general of Japan Aluminium Association said that "Demand from the auto sector next fiscal year may be about 25% to 30% below the level of this year." In February 2009, Japan's shipments of aluminum rolled products tumbled 39% YoY to 112,991 tonnes from a year earlier. It was the fifth straight month of decrease and the largest drop since March 1975. Details of output, shipments and inventories for February are as follow: Feb '09 Jan '09 Change Change YoY Output 112,091 117,261 -4.4% -40.3% Flat rolled 66,222 65,262 1.5% -41.2% Extruded 45,869 51,999 -11.8% -39.0% In tonnes  Feb '09 Jan '09 Change Change YoY Shipments 112,991 122,193 -7.5% -38.7% Flat rolled 67,080 70,223 -4.5% -38.8% Extruded 45,911 51,970 -11.7% -38.5% In tonnes  Feb '09 Jan '09 Change Change YoY Inventory 85,624 86,883 -1.4% 2.9% Flat rolled 74,930 75,788 -1.1% 3.0% Extruded 10,694 11,095 -3.6% 2.9% In tonnes