Japan: Rolled aluminium industry faces 6.5% y-o-y decrease in shipments

The Japan Aluminum Association reported a 6.5% y-o-y decline in the shipment volume of rolled aluminium products for January to December 2023, reaching 1,707,547 tonnes (t). This figure marked the lowest in 20 years, falling below the levels observed during the Corona disaster and the Lehman shock period in 2009, which were approximately 1.72 mnt and 1.74 mnt, respectively. Despite automotive materials for vehicles surpassing 200,000 t for the first time in recorded history, the production of construction materials and materials for electronic communication equipment experienced a decrease.

This marks the sixth consecutive year that shipments have fallen below 2 mnt, with production down by 7% to 1,697,283 t.

Breaking down the data, plate shipments saw an 8% y-o-y decrease to 1,046,234 t, with production also declining by 8.6% y-o-y to 1,048,971 t. Within this category, "canned materials" experienced a slight 0.7% decrease to 387,284 t but showed a 0.4% increase. The soft drink market witnessed a slight dip in overall sales due to reduced consumption amid rising prices. However, alcoholic beverage sales, especially for ready-to-drink (RTD) beverages, remained robust, benefiting from lower beer prices following the revision of the Liquor Tax Law. The automotive sector witnessed a 15.7% y-o-y increase in sales, totalling 206,412 t, attributed to a rebound in finished vehicle production and the demand for lighter vehicle bodies.

Extrusions saw a 4.1% y-o-y decrease in shipments, totalling 661,313 t, and a 4.3% decline in production, reaching 648,312 t. Within this category, construction-related extrusions experienced a more significant drop of 9.3%, amounting to 380,967 t, attributed to a reduction in housing starts influenced by the rise in construction material costs due to the yen's depreciation and a shortage of labour.

On the other hand, sales for automobiles showed a notable increase, surging by over 30% to 134,073 t, marking a 15.5% rise, attributed to increased demand and sales in the automotive sector.

Shipments of foil, derived from boards as the base metal, saw a 12.2% decrease to 97,691 t, with production down by 12.1% to 96,851 t. Specifically, lithium-ion batteries declined by 13.3% y-o-y to 27,477 t, and capacitors decreased by 17.1% y-o-y to 20,374 t, reflecting factors such as a prolonged smartphone replacement cycle, reduced consumption amid rising prices, and sluggish private capital investment.

Food sales declined by 7.4% to 21,700 t, particularly in luxury goods such as confectionery, affected by escalating prices. In the realm of food packaging, there is a noted shift to alternative materials like plastic, replacing microwave-safe packaging materials.

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