It believes emerging sectors such as renewable energy and electric vehicles, and initiatives relating to light weighting of automobiles will drive demand.
Aluminium consumption in Japan reached a high of 4.5Mt in 2006. But due to the downturn consumption had decreased to 4Mt by 2010.
Japan consumes about 10% of the world's total aluminium produced every year. It imports primary aluminium from Australia and Brazil, and converts it into die-casting; rolled and extruded; casting and forging products. Al consumption per person in Japan is one of the highest in the world at 27.6kg, while about 92.2% of beverage cans are recycled in Japan.
The Japanese Aluminium industry is banking on the renewable energy sector in the wake of problems relating to nuclear energy following the earthquake in March this year.
Takuki Murayama, Executive Director, Japan Aluminium Association, said: “There is an emphasis now in Japan on renewable energy, particularly solar power. Aluminium will find presence on the photovoltaic cell modules, panels and frames. In the future, we hope to see more aluminium in the renewable energy segment," added Mr Murayama.
Electric vehicles are gaining in popularity in Japan. These vehicles are driven by the lithium-ion batteries. "The lithium-ion batteries use a high amount of aluminium. With more electric vehicles coming on to the roads, demand for aluminium will grow," noted Mr Murayama.
He was speaking on the sidelines of the 6th Indian Conference on Aluminium (INCAL) in Hyderabad, India.