Japan aluminum shipments may reach 4 year high on weak yen

Bloomberg reported that 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%.

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