Japan’s Aluminium Imports See Sharp Decline in August

Japan’s Aluminium

Japan experienced a significant drop in aluminium imports in August, both compared to the previous month and the previous year, due to a combination of slower demand, logistical issues, and disruptions caused by the late-August typhoon. The storm's impact, along with a suspension of construction projects, hit the domestic aluminium product market particularly hard.

Imports of primary aluminium fell by 15% month-on-month and by 10% year-on-year, reaching 85,992 tonnes. For the January-August period, total aluminium imports reached 693,627 tonnes, a 2.6% decline compared to the same period last year, according to customs data.

Production and Sales Impact

The Japan Aluminium Association (JAA) reported that domestic production of aluminium products in August also saw a 6.1% year-on-year decrease, producing 116,567 tonnes. Domestic sales were similarly affected, decreasing by 9.6% to 119,119 tonnes. This decline in sales is attributed to delayed construction plans following Typhoon Shanshan and decreased beverage consumption, which JAA links to rising living costs.

However, not all sectors faced declines. Car production in July increased by 3.3% year-on-year to 811,981 units, showing some resilience in automotive demand. In contrast, new housing projects fell slightly by 0.2%, reflecting a more subdued demand in the construction sector.

Japan’s imports of secondary aluminium alloy ingots (ADC12) were also down by 5% from the previous month, totaling 90,895 tonnes in August, according to the finance ministry.