Japan foresees a rise in aluminum prices

Japanese metallurgists believe that the demand for aluminum from the US auto makers may increase the price. Japanese Industries reports that the price of aluminum could rise by a third to $ 2,500 per tonne if the number of automakers using the light metal grows.

Ford Motor is launching a new aluminum F-150 this year, leading to the idea that other car manufacturers will also start using aluminum. The use of aluminum instead of steel provides vehicles with light weight and fuel economy.
The chairman of the Japan Aluminum Association, Takashi, confirmed that in this case, prices could rise to $ 2,500 per ton. He added that producers of rolled aluminum will be able to gradually increase prices for their customers.

Currently, LME aluminum prices hit $ 1,900, a 13-month high. The use of aluminum in the production of automobiles is capable of providing huge market demand, experts say. Some Japanese aluminum producers, such as UACJ Corp, are already aiming to strengthen their position in the growing US market by increasing their production capacity.

But the president of Nippon Light Metal Holdings Company Limited noted that Japanese automakers are also working to promote technology to improve vehicle efficiency, but are not using aluminum instead of steel. He clarified that the long-term goal is to increase demand for aluminum in Japan to 650 thousand tons per year by 2035 from the current 400 thousand tons against the background of strengthening the use of metal in new areas, including cars.