JAPAN DATA: Aluminum demand in September falls 3% on year

Japan's aluminum demand fell 3% year on year to 313,200 mt in September, data released by the Japanese Aluminum Association showed Nov. 29, a development caused by the significant drop in consumption from its transportation sector amid semiconductor chip shortages.

Output of passenger cars from eight automakers in Japan totaled about 398,075 units in September, down 49.7% year on year, due to the ongoing global chip shortage and delays in procuring parts from Southeast Asia, according to a report by the Japan Times.

September saw the sharpest drop since May 2020, when domestic output declined 61.8% from a year earlier as COVID-19 outbreak disrupted the markets.

Output and sales by automakers bottomed out in May 2020 but began to recover as governments around the world started easing lockdowns.

S&P Global Platts assessed the weekly Chinese ADC12 export price at $3,150-$3,200/mt FOB China Sept. 29, up from $2,950-$3,000/mt Sept. 21.

Prices of Asian ADC12 aluminum alloy — the major material used for automobile parts production — started to decline after surging to a year-to-date high Oct. 19, led by falling primary aluminum and silicon metal prices.

Between July and October, ADC12 prices trended upward amid rising primary aluminum prices, higher production costs and tight supply conditions in China.

Due to decreasing demand in the domestic market, Japan's secondary aluminum output fell 0.6% on the year to 62,800 mt in September.

Japan's alloyed unwrought aluminum imports increased 26.9% year on year to 85,000 mt in September.

Japan is the largest importer of China's unwrought aluminum alloy products.