Japan: Positive trends in aluminum shipment for automobiles signal industry recovery

Shipments of rolled aluminum products for cars is bouncing back, reaching over 100,000 t in the first half of Japanese FY'23, a 20% increase from the pre-COVID levels in 2019. This recovery is attributed to the resolution of semiconductor shortages, aiding the resumption of automobile production.

The surge in vehicles incorporating aluminum panels has further fuelled the uptick in shipments, according to Japan Metal Daily.

Rolled aluminum products, including sheets and extruded items, serve diverse automotive purposes, from internal components like piping to structural elements like roof rails. Recently, their application has extended to housing lithium-ion batteries, in addition to traditional uses in exterior panels such as hoods and doors.

Before the pandemic, there was a gradual shift from steel to aluminum for various car parts to reduce overall vehicle weight, particularly for high-end, hybrid, and electric vehicles. The disruption caused by the pandemic led to instability in the shipment of aluminum products.

However, since the beginning of this financial year, semiconductor and parts shortages have been resolved, allowing major automotive companies to stabilise production and resume manufacturing of popular models, prominently featuring aluminum components.

In the first half of FY'23, shipments of rolled aluminum products for passenger cars witnessed a significant increase, with a 33% y-o-y rise for sheets and a 23% increase for extruded products, totalling 100,535 t.

This surpasses the 100,000 t-mark for the first time in the fiscal year's initial half. Notably, compared to the pre-pandemic levels in the first half of FY'19, sales of extruded products remained steady, while plate product sales soared by 40%.

An executive from a major aluminum rolling company explained that the boost in aluminum shipments for automobiles is mainly driven by major automotive companies compensating for past production cuts and increasing use of aluminum panels, particularly in high-end cars.

The executive anticipates continued rise in aluminum usage in vehicles in the medium to long term due to ongoing development projects.

While aluminum panels were initially prevalent in luxury cars and electric vehicles, their adoption is now expanding to SUVs and other vehicle types. With automotive production stabilising, there is a growing likelihood that shipments of rolled aluminum products for automobiles will continue to rise in the future.

Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.