ASUKA ALUMINIUM NEWS NO.645 MARCH 2015
Aluminum stocks at LME warehouses are diminishing
In January 2014, the aluminum stocks at London Metal Exchange warehouses hit
a record high, 5,490,000 ton, which equaled 10 per cent of world yearly consumption,
and was really an abnormal level.
However since then, the stocks are decreasing continuously, and marked 4,007,000
ton on February 9, the lowest in past five years. The abnormal huge stocks prevented
from shipping of aluminum ingot and at last the shipping order takes two years ormore.
At last London Metal Exchange reformed the warehouse system to promote early
shipment, and the abnormally piled inventories are decreasing. On the other hand,some people say the smelters’ declined production under unprofitable market brought
the decrease of stocks.
The origin of this excessive stocks comes from the huge investment of hedge funds
and investment banks supported by major governments’ super low money rate deal. It
is thought that the world economic circumstances are still going on, and the aluminum
stocks at LME warehouses won’t decrease extremely.
Some say the decreased inventories at LME warehouses will invite a bull market,
however the market does not react it. The inventories come to spot market from LME
warehouses, and “the Japan premium” will disappear, this is our happy expectation.
The chart on page one shows LME market, dollar/ton, and stocks at LME
warehouses, 10,000 ton.
Demand of aluminum beverage can in 2015
The Aluminum Can Recycling Association (Chairman, Mr. Keiichi Shirai, Directorof Universal Can Limited) revealed the estimated demand of aluminum beverage canin calendar year 2014 and 2015 on February 13.
According to the announcement, the demand in 2014 increased 4 per cent from ayear earlier to 20.16 billion can, in which the demand for beer decreased 1 per cent,and the various drinks except beer rose 10 per cent year on year.
The association estimates that the total demand in 2025 increases 7 per cent fromthe previous year to 21.7 billion can. As the same as the previous year, beer can
reduces 1 per cent. Beer breweries have gloomy outlook; the beer consumption marked
the highest in 2007 and then it has become lower gradually year by year brought by
the aging society and the decrease of drinkers.
But the demand for coffee expands remarkably in 2014 and 2015. The conversion
from steel can is going on powerfully in canned coffee business.
On the other hand, some Japanese rice wine breweries try to market aluminumbottle canned rice wine, sake, diligently.
The demand of aluminum beverage can in Japan was made up for past eight years
as follows. (unit: billion can)
2006
18.36
2007
18.52
2008
18.34
2009
18.24
2010
18.56
2011
18.80

1012
19.13
2013
19.45
Notes for the table on page two:A. beer, other alcoholic, nonalcoholic, totaled except beer,
totaled domestic supply, bottle type(inside figure)B. empty imported
C. canned imported
D. canned exported
E. totaled domestic demand(unit: 0.1 billion can, bracketed is per cent compared with the previous year.)
JARA launches the study on Al-Mg alloy diecasting
The Japan Aluminum Refiners Association revealed recently that the technicalcommittee of the association ( Chairperson, Dr. Sanji Kitaoka) launches the technicalstudy on Al-Mg alloy diecast (ADC 5) in fiscal 2015, starts in April 2015 and ends inMarch 2016, in partnership with the Japan Diecast Association.
Traditionally in Japan, Al-Mg alloy has never used actively, but it has some good
properties and is used for various aspects in Europe. Today, we know there are sometechnical difficulties for mass production of Al-Mg alloy diecasting.
The committee wants to develop for easier diecasting process and to expand newusages.
We show the Al-Mg alloy in Japan Industrial Standard on page three. Above is alloy
ingot, AD 5, and below is diecast, ADC 5.
Nishio cherry blossoms festival opens on March 21
The Nishio Castle Garden and the Midori riverside are very nice spots for cherry
blossoms, and every year Nisho Sightseeing Society opens cherry blossoms festival atboth spots.
Traditionally the festival has been held in April, but the best season gets earlier
year by year, and at last this year it is held in March. At the both spots, various events
are arranged by the society as follows.
flower market
costume play
grabbing eel and gold fish
big bingo gamesampling party of Japanese rice wine
So many visitors will enjoy lovely cherry blossoms and various exciting events among
the best weather. The photo on page three is Nishio Castle Park.
Shell gathering season comes at Mikawa Bay
March is the best season to gather sea shells at Mikawa Bay, and specially somespots of seashore in Nishio City are noted for excellent short-neck clam.
The photo on page four is the enjoying kids gathering sea shells in low tide water at
Kira Waikiki Beach. Nowadays, the time of tide and weather cause big traffic jam.
Please take precautions.