July 2023 sees a 5% dip in Japan's rolled aluminium shipments

According to the data from the "Overview of Production and Shipments of Rolled Aluminium Products" provided by the Japan Aluminium Association, the shipment of rolled aluminium products in July witnessed a year-on-year decline of 5.1 per cent, totalling 145,429 tonnes. Concurrently, production also experienced a 5.6 per cent year-on-year decrease, reaching 147,351 tonnes. Although there was a rise in sales for automotive applications and plate extrusion, sales remained sluggish for can stock, construction, semiconductor manufacturing equipment, and exports.

While dissecting the data based on product categories, it observed a 6.0 per cent decrease in plate shipments, totalling 89,220 tonnes. Domestic demand showed a marginal dip to 79,283 tonnes (-0.6 per cent), primarily due to slower exports, especially in the can stock sector in North America. Nevertheless, there was a remarkable rebound in production, with automotive sales surging to 17,766 tonnes, signifying a substantial 44.4 per cent increase. This boost can be credited to the increasing adoption of aluminium panels in the automotive industry.

Conversely, the inventory of stocks stood at 33,374 tonnes, marking a 5.2 per cent decrease. This reduction can be attributed to reduced consumer interest in purchasing beverages, a trend driven by price increases resulting from diminished demand for at-home consumption. In contrast to the levels seen in July 2019, before the COVID-19 pandemic began, there was a decrease of 6,000 tonnes.

The export data reveals a similarly subdued trend, with a notable decrease to 9,937 tonnes, indicating a significant decline of 34.3 per cent. Extrusion statistics displayed a 3.6 per cent decrease, totalling 56,209 tonnes. Notably, there was a resurgence in automotive materials, reaching 11,831 tonnes with a noteworthy increase of 22.8 per cent, which can be attributed to the recovery in demand for truck bodywork. In contrast, the construction sector experienced a decline in sales, amounting to 31,899 tonnes, representing an 11.8 per cent decrease. This drop was primarily due to the reduced utilization of aluminium in residential construction.

Production of foil from base metal boards saw a significant decline, dropping by 16.2 per cent to 8,248 tonnes. Sales of lithium-ion batteries and condensers also experienced substantial decreases, with figures reaching 2,357 tonnes (a 14.5 per cent decrease) and 1,553 tonnes (a 23.3 per cent decrease), respectively. Although there was a rebound in automotive component sales, the consumer product segment, especially smartphones, witnessed sluggish sales. Food production numbers amounted to 1,788 tonnes, reflecting a 12.2 per cent decrease. This decline can be primarily attributed to reduced consumption, particularly in luxury items, due to rising prices. Furthermore, sales of functional beverages declined in response to the strong sales observed in the previous fiscal year.

                                Received under the content exchange agreement with SteelMint