Aluminium, copper goods grow in Japan

Aluminium shipments and copper product output in Japan last month jumped to the highest level this year, the Japan Aluminium Association said yesterday. Supplies of aluminium rolled products to the domestic and export markets gained 5.1 percent from June to 166 673 tons, the highest level since October. Copper and alloy product output rose 6.1 percent to the highest level since November, according to the Japan Copper and Brass Association. Aluminium has gained 20 percent and copper more than doubled amid signs the world economy is emerging from the recession as record-low interest rates and trillions of dollars in fiscal stimulus spur demand. Japan's economy grew for the first time in five quarters in the three months to June, the state said last week. "Shipments improved thanks to demand from the car and electronics industries," said Koji Iida, an aluminium association spokesman. "Sales may fall in August as a cool and rainy summer slows sales of drink cans." Compared with a year ago, last month's shipments of aluminium products fell 20 percent as demand from the construction sector remained weak. Still, the pace of decrease was the slowest in eight months. Toyota this month raised its global sales forecast to 6.6 million cars from its May forecast of 6.5 million as state stimulus measures boost demand. The US, Germany, Japan and China offered consumers credits, tax breaks and subsidies for trading in their old vehicles as the industry's worst slump in decades forced US firms Chrysler and General Motors into bankruptcy. Japan's economy grew last quarter as exports and consumer spending rebounded. Gross domestic product expanded at an annual 3.7 percent pace in the period to June, after an 11.7 percent drop in the first three months of the year, the Cabinet Office said this month. The pace of decline in Japan's aluminium 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. The Japanese Electric Wire and Cable Makers' Association said last week the country's copper wire and cable shipments climbed last month to the highest level since November. Shipments were 58 200 tons last month, up 8.9 percent from June. July's shipments lost 21 percent from 73 244 tons a year earlier. - Bloomberg