Rise in import cost to dent Japan aluminium can imports in 2017

Japan is the biggest aluminium and aluminium products importer in the Asia Pacific region. The premiums it agrees to pay per quarter for the primary metal shipments, over the LME aluminium cash price set the benchmark aluminium price for the entire region. The country’s annual consumption of aluminium cans has been increasing with the spread of aluminium cans for coffee beverages and bottle cans. Till 2016, japan imported a major percentage of aluminium cans to meet the domestic demand. However, with the growth of the domestic metal packaging industry, imports are expected to slow down in 2017.

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Japan imported 3372 tonnes of aluminium cans in 2016 compared to 3245.5 tonnes in 2015. In 2017, aluminium cans imports are estimated to drop. As per international trade data, total aluminium cans import will reach 2938.5 tonnes by the end of the current fiscal year.

The cost of aluminium can import in Japan has also risen year-over-year. This is another reason why the country is looking at reducing its import dependence for the commodity. Japan’s metal packaging industry has been logging a satisfactory growth over the last five years. With the rise in the number of domestic aluminium can manufacturers, imports will automatically drop. The cost of aluminium cans import which stood at US$32.7 million in 2016 (up from US$30 million) is estimated to drop to US$27 million.

The countries from where Japan imported its maximum chunk of aluminium cans in 2016 were Taiwan (1280 tonnes), China (569 tonnes), France (395 tonnes), and Germany (109 tonnes).

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Showa Aluminum Can Corporation, a consolidated subsidiary of Japan's Showa Denko Group of Companies, continued to perform aluminium can recycling activity in fiscal 2016. The company collected approximately 4.85 million aluminium cans: equivalent to about 76 tonnes of aluminium when converted at the rate of 15.6 grams of aluminium per can.