DAIKI to Reduce Secondary Al Ingot Output by 20-30% in January

DAIKI Aluminium Industry, Japanese largest maker of secondary aluminium alloy, will reduce production of RSI (re-melted scrap ingot) largely in and after January 2008, which is produced from UBC (used beverage can). The firm is suffered from large loss in the aluminium can recycling business when overseas primary aluminium market continues declining while UBC purchasing price is increasing. The firm will decide how much to decrease RSI output within this year, while indicated the production might be cut by 20-30%.UBC market price is surging in Japan though overseas primary aluminium market continues decreasing. UBC supply is rather tightening with low generation of aluminium scrap in winter and strong demand for UBC from secondary aluminium alloy makers and deoxidizing agent makers. UBC price stays at the yearly highest level since November, around 185-190 yen per kilogram at purchasing price by secondary aluminium alloy makers.On the other hand, secondary aluminium makers’ RSI selling price is decreasing which reflects the fluctuation of overseas primary aluminium market every 3 months. Secondary aluminium makers are suffered from worse profitability of RSI with the high material cost and the low selling price. Some secondary aluminium makers other than DAIKI have already reduced UBC purchasing and RSI output volumes.