Japan Secondary Al Output Shows First y/y Down in 13 Half Years

Japanese secondary aluminium and alloy production decreased by 1.3% to 556,656 tonnes for a half year to September compared with the corresponding period of 2007 while the shipment declined by 1.7% to 561,456 tonnes, announced Japan Aluminium Alloy Refiners Association. Both production and shipment represented the first year-on-year down in 13 half years. Japanese secondary aluminium makers reduced their output when US automobile market maintained stagnant.

The shipment decreased by 2.3% for die castings and by 0.6% for castings, both of which are largest applications of secondary aluminium and alloy.

US automobile market significantly declined due to economy slowdown caused by subprime loan problem. Japanese automakers have shut down their US plants or recessed large car production in the country. Japanese automakers also reduced production of completed cars and knockdown at domestic plants because of export decrease for USA. Along the weak auto market, demand for secondary aluminium declined.

A domestic secondary aluminium share was also impacted by sharp increase of cheaper imports from China and South Korea.