Japan Secondary Alloyed Aluminium Makers Cut Output Further

Japanese major secondary alloyed aluminium makers expand the production cut. Some makers stop the operation for half month in January when the order receipt decreases by 50% in January from a year earlier. Daiki Aluminium Industry stops the operation in second half of January at the plants in Fukushima and Aichi while the firm operates only a furnace out of major 2 furnaces at Ibaraki plant. The makers are likely to keep such production cut through March.

The demand decreases further in January. Some automakers canceled the tender for secondary alloy for January-March while some buyers reduce the purchase volume in January to a third of normal level.

Major automakers held tender in early December for January-March shipment. However, the purchase volume decreased to less than half of normal level, according to sources. Automobile parts makers apparently hold inventory for 2-3 months of consumption. They reduce the purchase volume to reduce the inventory.

The alloy makers expand the production cut to meet very slow demand. A major alloy maker expects the demand could be such low level in April-June.