The Japan Aluminium Alloy Refiners Association forecast on Monday that demand for diecasting aluminum alloy from the automotive industry would rise 1.5% year on year to 986,500 mt in fiscal 2017-2018 (April-March).
Demand in the current financial year was 972,200 mt, up 3.1% from a year ago, the association said.
Around 20 types of ADC alloys are specified under the Japan Industrial Standard. Around 94% of Japan's demand in the current fiscal year comprised ADC12 alloy used for engine parts and transmission cases.
ADC12 will continue to account for nearly all of Japan's ADC alloy demand, said Koh Morimoto, the association's general affairs director.
The association said that Japan's passenger and commercial vehicle production would grow 1.6% in the next fiscal year.
The Japan Automotive Manufacturers Association has forecast a 0.8% decline to 5,000,300 vehicles.
"From the second half of the current financial year, new model launches pushed up car demand. This trend will continue in the coming financial year," Morimoto said.
Demand for casting aluminum alloys, also mainly for the automotive sector, was expected to rise 2.1% in fiscal 2017-2018 to 352,600 mt, the aluminum refiners association said.
There are over 40 types of AC alloys in Japan, Morimoto said.
Demand for secondary aluminum alloy sheets, used for beverage cans, is expected to stay flat at 201,900 mt in fiscal 2017-2018.
Steelmakers use aluminum alloys for deoxidization and demand from the sector is expected to rise 1.3% to 116,300 mt as Japan's crude steel output is expected to increase in fiscal 2017-2018.
The association put Japan's total secondary aluminum demand in fiscal 2017-2018 at 1,657,300 mt, up 1.4% yeaar on year.