Secondary Al Alloy Demand Drops Down in China

Secondary aluminium alloy makers in China are widely reducing their outputs due to weakening demand in the country. Guangdong Longda Aluminium Corporation, in which Nippon Kinzoku (Japanese major maker of deoxidizing agents) holds 21% shares, is now in low operation whose current output is 1,500 tonnes per month and the operating rate is 38%. Guangdong Longda’s order receipt volume remarkably decreased in and after mid September though the firm started full production in August after Beijing Olympic.

Baoding Longda Aluminium Industry, another Chinese JV 40% controlled by Nippon Kinzoku, is also in low production whose operating rate is currently around 50%. Baoding Longda’s output capacity is 3,000 tonnes per month and the JV had kept full production in recent years. The demand is expected not to recover within this year.

Japanese automakers seem reducing car production in China by 20-30% year-on-year in and after September. Some of Chinese automakers are likely to halve the car production.

Guangdong Longda supplies primary and secondary aluminium alloys to Japanese automakers including Guangzhou Honda. The JV also started to supply primary aluminium alloy to Nissan Motor’s plant in Huadu, China this autumn. However, the order receipt volume is almost as half as expected.