Copper output as well as aluminium demand reached the year’s high in July 2009 with the gradually improving economic conditions worldwide.
Japan’s aluminium shipments and copper product output touched this year’s peak in July 2009 as the worldwide economy recovered from the worst crisis ever since the Great Depression, as reported by Bloomberg.
Statistics from Japan Aluminium Association reveal that the supplies of rolled aluminium products to both the domestic as well as the export markets increased 5.1% in July 2009 from the previous month to 166,673 Metric Tons, representing the highest level since October 2008. As a result, copper and alloy product output surged 6.1%, recording the highest level since November 2008, stated the Japan Copper and Brass Association.
Aluminium grew 20% while copper more than doubled amid signs of the global economy making a gradual come back from the turmoil. Moreover, economic stimulus packages worth trillions of dollars coupled with record-low rates of interest also infused life into the demand for the metal. Sectors such as information technology and automobiles also played a key role in spurring the demand. However, the only thing that is raising the concerns is the slowdown in the construction sector; as a result of which, prospects for any recovery in demand remains vague.
According to industry experts, the improved demand for aluminium is attributed to the rebound from the steep inventory cuts made since late 2008 in wake of economic recession that caused the demand for the metal to contract drastically.
Meanwhile, demand for copper surged this year, mainly on the speculations that a revival in the worldwide economy may boost the demand for industrial metals. It is noted that copper demand has been continuously displaying improvement since May 2009 when the shipments struck a 34-year low.
According to a Research Analyst at RNCOS, “Considering recent growths in monthly shipments, it may circumspectly be said that the demand for industrial metals is slowly and steadily upturning. Although Japanese economy emerged from recession in Q2 2009, domestic demand for metals still remains weak. Moreover, there are suspicions about the sustainability of export revival driven by government’s stimulus efforts.”
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