Japan's import of aluminium plates, sheets & strips saw a 57% increase in Q1 2019; exports registered a decline

Japan is a major importer of aluminium as it has stopped producing primary metal altogether shifting its focus towards value added applications and in secondary recovery. The country is Asia's top importer of aluminium and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange cash price set the benchmark for the Asia region.

However the country is a key producer of aluminium plates, sheets & strips, the two major rolled product manufacturers being Kobe Steel and Aluminium and UACJ Corporation who make aluminium plates, pre coated sheets and various rolling products for value added applications. Let’s analyse Japan’s foreign trade trends for aluminium plates, sheets & strips in 2018 and in the first quarter of 2019.

Japan has a trade surplus for aluminium plates, sheets and strips. In the year 2018, Japan imported 108,000 tonnes of aluminium plates, sheets and strips while export stood at 195,000 tonnes.

As we see in the statistics from Japan Aluminium Association, Japan’s import of aluminium plates, sheets and strips has increased in the first quarter of 2019 totalling at 34,200 tonnes, about 57% increase from 21,800 tonnes imported in the first quarter of 2018. At this rate total import of aluminium plates, sheets and strips is estimated to stand at about 137,000 tonnes.

As for export is concerned, Japan exported 43,400 tonnes of aluminium plates, sheets and strips in the first quarter of 2019, a drop of 11.8% from 49,200 tonnes exported in Q1 2018. At this rate total export of aluminium plates, sheets and strips is estimated to stand at about 173,600 tonnes.

Overall production of flat rolled products in Japan has registered about 6% drop in the first quarter of 2019. On the other hand, strict restrictive trade policies of Trump in the U.S. against semi-finished import from China has diverted its semi-finished aluminium exports  to other destinations in Asia leading to an influx of aluminium  product imports in a number of Asian countries including Japan.