The shipment of aluminum from Japan increased by 1.4% in April 2008 due to rising export and growing demand from automobile, construction and packaging industry.
The Japan Aluminium Association revealed that shipments of aluminum mill products mounted 1.4% in April 2008 against the corresponding month last year, first time since August 2007, as reported by ninemsn.
The association disclosed that 198,612 Tons of aluminum was shipped in April 2008 against the same month’s shipment last year. The aluminum shipment in March 2008 was around 193,573 Tons.
The Japanese aluminum shipment smoothly sailed on rising demand from the rapidly growing automobile industry, which is being steered by domestic demand and export. Hence, the outward pressure is built on the aluminum industry for more production. Moreover, rising income of people is improving their standard and lifestyle, which, in turn, is increasing the demand for vehicles in the country. In addition, the demand for exporting items like automotive parts and window frames has increased. As a result, the Japanese aluminum industry experienced rise in aluminum shipment in April 2008.
Also, the packaging industry, transportation industry and construction industry pressurized the Japanese aluminum industry for production increment in April 2008. The rapidly expanding construction industry has boosted the aluminum demand from fabricators. The construction industry use extrusions for making aluminum window frames.
On the contrary, industry experts think that the domestic consumption of aluminum has been low in recent past because of low shipments of aluminum in the seventh straight month (March 2008) as demand of drinks cans slumped. Moreover, end-users are also keeping their inventories at a low level on account of high global prices.
Furthermore, Hiroshi Yao, Chairman, Japan Aluminum Association, said that for growth in the Japanese aluminum industry, it would devise industry-wide initiatives to curtail the cost of raw material purchases, as reported by platts on May 27, 2008.
According to a Research Analyst at RNCOS, “Except for any economic shocks in near term, the Japanese aluminum industry will continue to see a rise in aluminum demand slowly and steadily. Companies engaged in the export of aluminum products need to rework upon their marketing strategies and have to develop their skills for maintaining the demand by offering quality service.”
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