Japan’s rising automotive industry demand to drive aluminium alloy imports in 2017

The demand for diecasting aluminium alloy in Japan automotive industry is slated to rise 1.5 per cent year-on-year reaching 986,500 million tonnes during FY2017-2018, revealed data released by the Japan Aluminium Alloy Refiners Association. Demand was estimated at 972,200 million tonne last fiscal, up 3.1 per cent from the previous year. The same uptrend is noticeable in casting aluminium alloys. The demand, also driven by the automotive industry is expected to grow at 2.1% rate in FY 2017-18 to reach 352,600 million tonne. Piggybacking this combined demand for value-added aluminium alloy products, import of aluminium alloy ingots is rising in Japan.

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Global export-import data suggests that Japan will import an estimated volume of 1.17 million tonnes of aluminium alloy ingot in 2017, up from 1.10 million tonnes in 2016 (6.1% YoY).  In last two years, Japan’s aluminium alloy ingot import has risen by almost 10 per cent. In 2015, the estimated volume stood at 1.07 million tonnes.

The value of aluminium alloy to be imported by Japan is estimated to remain largely unchanged at US$1.9 billion in 2017 (from that in 2016). In 2015, however, it was 10.5 per cent higher at US$2.15 billion.

Japan has been importing aluminium alloy from a number of countries in 2017, the major being Russia, UAE, Saudi Arabia, Bahrain, Australia, Malaysia, Turkey, US, UK, and Canada. From China alone, the country imported 1,083 tonnes of aluminium alloy during January-May 2017.

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The Japan Aluminium Alloy Refiners Association forecasts that the country’s passenger and commercial vehicle production would grow by 1.6 per cent in the current financial year. "From the second half of the current financial year, new model launches pushed up car demand. This trend will continue in the coming financial year," said a senior official.

Besides, Japanese steelmakers is also slated to increase their consumption of aluminium alloys for deoxidation by 1.3 per cent in FY2017-18, reported a premiere industrial digital source. All these factors would combine to boost the import of aluminium alloy ingot by Japan in the coming quarters.