Japan Secondary Al Alloy Output Sharply Drops in November

Secondary aluminium alloy demand is seriously impacted by production cut at automakers including Toyota Motor Corporation. Japanese secondary aluminium alloy ingot production decreased by 25% to 76,610 tonnes in November from a year earlier and the shipment declined by 24.5% to 77,650 tonnes, announced Japan Aluminium Alloy Refiners Association. The decreasing ranges were the widest since May 1975.

The shipment decreased by 26.8% to 42,020 tonnes for die castings and by 29.1% to 20,119 tonnes for castings to follow the sharp decline in Japanese automobile production. Domestic alloy demand is also impacted by the continuation of high level import of offshore cheaper ingots.

Operation rate at Japanese major secondary aluminium makers is around 50-60% currently when the makers widened the output reduction range in December 2008. A source said the situation would continue toward April-June 2009 at shortest.