Prices for aluminium could climb around a third to as high as $2,500 per tonne if more U.S. automakers start producing vehicles made from the metal, said the new head of Japan's aluminium industry body.
Ford Motorplans to launch a new aluminium-intensive truck this year, with speculation that other carmakers could start using more of the metal, which is lighter than steel and helps make vehicles more fuel-efficient.
"If automakers follow Ford's step to use more aluminium, supply of the metal will become short and prices could rise as high as around $2,500 per tonne," Takashi Ishiyama, chairman of the Japan Aluminium Association, said on Thursday.
He said that association members such as producers of rolled aluminium would be able to pass on a gradual increase in prices to their customers, and that they would welcome the chance to use current inventory to make products they could sell at higher prices.
London Metal Exchange aluminium prices, which hit a 13-month high earlier this week, stood around $1,900 per tonne on Friday.
Ishiyama said that Ford would need supply from the equivalent of a whole smelting plant to churn out its new F-150 trucks, providing a big new source of demand.
He added that some Japanese aluminium product makers such as top manufacturer UACJ Corp <5741.T> were aiming to win a bigger slice of the growing U.S. market by adding production facilities there.
But Ishiyama, also the president of Nippon Light Metal Holdings Co Ltd <5703.T>, said Japanese automakers had been trying to improve car efficiency through technological advances rather than shifting to aluminium vehicles.
"However, we have a long-term goal to aim to boost aluminium demand in Japan to 650,000 tonnes a year by 2035 from 400,000 tonnes now by widening the metal uses to new areas including automobiles," Ishiyama said.
Source: Reuters
Ford Motor
"If automakers follow Ford's step to use more aluminium, supply of the metal will become short and prices could rise as high as around $2,500 per tonne," Takashi Ishiyama, chairman of the Japan Aluminium Association, said on Thursday.
He said that association members such as producers of rolled aluminium would be able to pass on a gradual increase in prices to their customers, and that they would welcome the chance to use current inventory to make products they could sell at higher prices.
London Metal Exchange aluminium prices
Ishiyama said that Ford would need supply from the equivalent of a whole smelting plant to churn out its new F-150 trucks, providing a big new source of demand.
He added that some Japanese aluminium product makers such as top manufacturer UACJ Corp <5741.T> were aiming to win a bigger slice of the growing U.S. market by adding production facilities there.
But Ishiyama, also the president of Nippon Light Metal Holdings Co Ltd <5703.T>, said Japanese automakers had been trying to improve car efficiency through technological advances rather than shifting to aluminium vehicles.
"However, we have a long-term goal to aim to boost aluminium demand in Japan to 650,000 tonnes a year by 2035 from 400,000 tonnes now by widening the metal uses to new areas including automobiles," Ishiyama said.
