Japan's consumption of high-purity aluminum ingot above 99.9%, used for condenser production, has doubled since the end of 2012 due to end-user restocking, market sources said Monday.
Japan's shipment of capacitor-grade aluminum foil used for electronic devices stood at 2,122 mt in March, according to data from the Japan Aluminium Association. April shipments remained at the March level, said sources at two rolling mills.
In December, capacitor-grade aluminum foil shipments were 979 mt, the association's data showed.
Shipments increased as end-users particularly in areas around Osaka restocked ahead of the regional power utility raising power rates starting in May, rolling mill sources said.
Restocking also accelerated last month because of end-users trimming inventories before the financial year closed March 31, sources added.
But foil production might fall after May as demand stays low, they said.
"The increase was not because of uptick in demand," one mill source said. "The demand outlook is uncertain after May as the foil is used for various manufactured products, some doing well, some not so well."
A foil plant source said over half of the capacitor-grade aluminum is for electronic devices exported to Europe. He described the foil demand outlook as gloomy on weak European demand.
"People speak of benefits thanks to the weaker yen driven by the Japanese government's counter-deflation policy, but actually our plant run rate [making aluminum alloy tubes for electronic devices] has gone down to 70% of our production volume, because of the slow European demand," said the plant source.
As a result, there has been no increase in demand for 99.9%-grade aluminum ingot in the spot market, consumer and producer sources said.
"Consumers have enough stocks," the mill source said. "They can cope without buying with their long term contract supplies."
豫公网安备41010502003434号