Japan June aluminium shipments up, demand returning

* June shipments down 21.6 pct from a year earlier * http://graphics.thomsonreuters.com/079/JP_ALISHP0709.jpg By Miho Yoshikawa TOKYO, July 28 (Reuters) - Japanese aluminium shipments rose 14.5 percent in June compared with May, the fourth straight monthly increase, amid signs of a recovery in demand in sectors such as information technology and automobiles. Tetsu Takahashi, chairman of the Japan Aluminium Association, said he expected demand to continue to recover, buoyed by an increase in automobile output in the coming months, although it will not return to levels prior to the economic crisis. "I think demand will return to about 80 percent (of normal), but more impetus will be needed for it to recover above that," Takahashi told a news conference on Tuesday. He said the association had no immediate plans to revise its demand outlook for the fiscal year to end March of about 1.7 million tonnes for flat-rolled and extrusion aluminium products. Demand for the two is typically over 2.0 million tonnes. Many Japanese automakers have flagged output increases in the coming months, as most expect a steady demand improvement in coming quarters helped by government programmes to encourage car purchases. [ID:nT124599] June aluminium shipments, which include domestic and overseas sales, amounted to 158,605 tonnes, still down 21.6 percent compared to June 2008, although the year-on-year decline was not as sharp as it was earlier this year, data provided by the association showed. "Shipments hit a bottom in January to March, and we are beginning to see a recovery in April, May and June ... the figures are much as we imagined they would be," Takahashi said. For a breakdown of the latest data, click on He said aluminium demand for cans remained steady, although there were worries about the coming summer months, when demand is typically strong, due to poor weather conditions so far this year. Takahashi said that demand for aluminium foil used in condensers was showing a strong recovery. Condenser shipments amounted to 3,145 tonnes, down some 15 percent year-on-year, but up about 44 percent from May. He attributed the rise in demand to government incentives to encourage consumers to buy energy efficient electronics and eco-friendly cars. Takahashi added, however, that while the year-on-year slump in demand from the automobile sector was not as steep as it was at the beginning of the year, it was still a little slow. "The more expensive cars are the models that use a lot of aluminium, and demand in that sector is still a little weak." Moreover, the U.S. auto market remains in a slump, which means that a recovery in exports of Japanese auto parts will remain slow for the time being, he said. (Editing by Michael Urquhart)