Japan aluminum shipments may reach 4 year high on weak yen
Time:Mon, 31 Mar 2014 05:34:44 +0800
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The shipments of rolled aluminum products by Japanese fabricators to domestic and overseas markets may increase to the highest level in four years as a weaker yen boosts exports.
The Japan Aluminium Association said that shipments for the year beginning April 1st 2014 are expected to climb to 2 million tonnes, the largest volume since the year ended March 2011. It will mark the second straight year of increase.
The expansion will be led by a 23% increase in exports of flat rolled products as a weak yen boosts the competitiveness of Japanese fabricators in markets such as China and Southeast Asia. The yen has weakened 7.8% in the past year against the dollar.
Aluminum for three month delivery on the London Metal Exchange has dropped 8.2% in the past year, the second-worst performer among six base metals on the bourse.
The pace of growth in overall shipments will slow to 0.6% from 1.8% estimated for this fiscal year as demand will weaken from the auto and housing industries after a sales tax increase in April.
In February, shipments expanded 2.4% to 160,159 tonnes the eighth straight month of increase, as consumers rushed to buy cars, appliances and houses before the government raises the sales tax to 8 percent on April 1 from 5%.