A strong earthquake in Japan caused serious problems in local city traffic and electricity supply. Industrial production fell sharply, and China’s aluminum processing materials were also implicated in Japan’s output.
In the short term, the earthquake affected China's exports to Japan's aluminum processing companies. However, China's aluminum exports to Japan accounted for a relatively small proportion, which has limited impact on domestic aluminum consumption. According to customs data, in the first three quarters of 2010, the total amount of aluminum profiles and aluminum strips exported from Japan to China was 2,384 tons and 4,747 tons, and the total output to Japan in the year was only less than 1% of the total exports of aluminum products in China. Therefore, the overall impact on the aluminum export market in China is not significant. At present, most domestic exporters have delayed their shipping plans to Japan, especially to Japan's northeastern cities. This has caused some trouble for companies in terms of capital circulation and inventory costs.
In view of the Japanese earthquake's demand for aluminum in the future, various industries have different views. For aluminum construction companies, the demand for investment in infrastructure reconstruction after the earthquake in Japan is promising, and the long-term perspective is positive. However, some companies also stated that the post-disaster reconstruction cycle is long-term, at least until a quarter later. The industrial aluminum and aluminum strip companies that focus on the automotive industry in the end market have expressed some worries. At present, a number of auto giants in Japan have all reported production suspensions. The core technologies of the auto industry are usually produced in the country, and China’s consumption as a major auto parts producer. Will certainly be weakened, so the repair of the Japanese auto industry will also to some extent drag on the development of domestic automotive aluminum industry.
Taken together, the current disaster experienced by Japan has a partial impact on the aluminum market in China. However, if Japan's disaster deteriorates, Japanese industry will be destroyed to a greater extent, and this impact will increase, especially in transportation. .
In the short term, the earthquake affected China's exports to Japan's aluminum processing companies. However, China's aluminum exports to Japan accounted for a relatively small proportion, which has limited impact on domestic aluminum consumption. According to customs data, in the first three quarters of 2010, the total amount of aluminum profiles and aluminum strips exported from Japan to China was 2,384 tons and 4,747 tons, and the total output to Japan in the year was only less than 1% of the total exports of aluminum products in China. Therefore, the overall impact on the aluminum export market in China is not significant. At present, most domestic exporters have delayed their shipping plans to Japan, especially to Japan's northeastern cities. This has caused some trouble for companies in terms of capital circulation and inventory costs.
In view of the Japanese earthquake's demand for aluminum in the future, various industries have different views. For aluminum construction companies, the demand for investment in infrastructure reconstruction after the earthquake in Japan is promising, and the long-term perspective is positive. However, some companies also stated that the post-disaster reconstruction cycle is long-term, at least until a quarter later. The industrial aluminum and aluminum strip companies that focus on the automotive industry in the end market have expressed some worries. At present, a number of auto giants in Japan have all reported production suspensions. The core technologies of the auto industry are usually produced in the country, and China’s consumption as a major auto parts producer. Will certainly be weakened, so the repair of the Japanese auto industry will also to some extent drag on the development of domestic automotive aluminum industry.
Taken together, the current disaster experienced by Japan has a partial impact on the aluminum market in China. However, if Japan's disaster deteriorates, Japanese industry will be destroyed to a greater extent, and this impact will increase, especially in transportation. .
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