Japan July Aluminum Shipments Climb to Highest Since October

Aug. 27 (Bloomberg) -- Japan’s shipments of aluminum rolled products increased to the highest level since October, led by the auto and electronics sectors, as government incentives boosted sales of energy-efficient cars and appliances. Supplies to the domestic and export markets gained 5.1 percent from June to 166,673 metric tons, the Japan Aluminium Association said in a statement today. Compared with a year- earlier, shipments dropped 20 percent as demand from the construction sector remained weak. Still, the pace of decrease was the slowest in eight months, according to the association. Toyota Motor Corp., the world’s largest automaker, this month raised its global sales forecast to 6.6 million vehicles from its May forecast of 6.5 million as government stimulus measures boost demand. The U.S., Germany, Japan and China offered consumers credits, tax breaks and subsidies for trading in old cars as the vehicle industry’s worst slump in decades forced Chrysler LLC and General Motors Corp. into bankruptcy. Japan’s economy emerged from its deepest postwar recession as exports and consumer spending rebounded. Gross domestic product expanded at an annual 3.7 percent pace in the three months ended June 30, the first growth in five quarters, following an 11.7 percent decline in the first three months of the year, the Cabinet Office said Aug. 17. The pace of decline in Japan’s aluminum shipments slowed in July for a fifth month after starting to drop in October. Shipments plunged 39 percent in February, the worst slump in 34 years, as the recession slashed demand for the metal used in cars and houses. To contact the reporter on this story: Aya Takada in Tokyo at atakada2@bloomberg.net