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16 JANUARY 2019 AL CIRCLE

Japan’s aluminium plates, sheets and strips exports to drop in 2019 after a rise last year

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Japan is home to two of the world’s leading automotive rolled aluminium producers- UACJ Corporation and Kobe Steel and Aluminium. Globally automotive aluminium rolled product market is growing driving the demand for aluminium plates, sheets and strips. Kobe Steel and Aluminium ships considerable volume of aluminium plates, sheets and strips globally which finds use in automotive BiW and closure applications. In 2016, the company had signed a deal with Toyota as per which it will produce and supply aluminium sheet for the hood and liftgate for Toyota’s 2016 Lexus RX 350 crossover in the US. Now, let us see the amount of aluminium plates sheets and strips Japan as a country exports.

Our own third party data shows that Japan’s aluminium plates, sheets and strips exports have been fluctuating year over year since 2017. In the said year, the estimated export volume dropped from 207,363 tonnes in 2016 to 191,132 tonnes, while in the year next in 2018, the volume rose to 208,373 tonnes, up 0.5 per cent from 2016 and 9 per cent from 2017. But this year, the estimated volume is again to see a plunge to 187,720 tonnes, down 10 per cent from 2018.

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Japan’s revenue from aluminium plates, sheets and strips exports have also been oscillating in tandem with the exports volume. In 2017, along with the drop in exports volume, the value plunged from US$ 731 million in 2016 to US$ 673 million, down 8 per cent. In 2018, the value rose to US$ 792 million, up 8.3 per cent from 2016 and 18 per cent from 2017. In contrast, this year the estimated revenue is pegged at US$ 689 million, down 13 per cent from the year last.

UACJ Corporation is looking at the Southeast Asian market to compensate for the slow growth in the domestic market. The company wants to revive a struggling Thai unit under this plan, which President Miyuki Ishihara expects to turn profitable despite the threat from Chinese supply. The group plans to expand in the south Asian market in order to increase pre-tax profit by 130% from 2018 to 45 billion yen by FY 2023.

Ishihara said, "It would be important for us to meet strong aluminium demand in Thailand and other Southeast Asian countries."


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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