The automotive industry in Japan, a major contributor to aluminium demand, had been hit with a series of headwinds in the first half of 2024, hampering its long-anticipated recovery. However, market participants still expect the automotive industry to support a recovery in aluminium demand in the latter half of 2024.
Three Toyota models that were suspended since June 3 are scheduled to resume production from the beginning of September, with the Ministry of Land, Infrastructure, Transport and Tourism confirming their compliance with the standards. Toyota, Japan's leading car manufacturer in 2023, produced 1,508,416 units in the country in the first six months of 2024, down by 8.2% compared to the same period in 2023, amid the certification issues and production suspensions.
The automotive sector remains the biggest demand driver for aluminium in Japan, accounting for 42.9% of total demand of the light metal in the first five months of 2024, with 642,300 tonnes used in the transportation sector in that period, rising by 0.2% from 640,700 tonnes in the same period in 2023, according to the Japan Aluminium Association.
Reflecting the light metal's growth potential stemming from the automotive sector in Japan, Fastmarkets has amended its aluminium P1020A (MJP) spot premium, cif Japan from a twice weekly publication to a daily publication starting on Wednesday August 7, following a market consultation.
