Japan Secondary Al Alloy Makers to Raise Output by 10% in October

Japanese major secondary alloyed aluminium makers including Daiki Aluminium Industry, Nikkei MC Aluminium, Summit Showa Aluminum and Asahi Seiren will increase the production and sales by 10% in October from a year earlier. They increase the production to meet higher demand when automakers normalize the operations. However, the domestic ingot price could decrease when cheaper Chinese AD12.1 supply increases in October.

Daiki Aluminium Industry plans 130,000 tonnes of production in October-March 2012 to meet higher order. Nikkei MC Aluminium operates on Saturday in October. Summit Showa Aluminum expects the production increases in October compared with almost full capacity operation in September. Asahi Seiren plans around 10% higher sales.

Domestic automakers try to cover production loss in earlier the year. Domestic finished car production is expected to increase by 24% to 931,800 units in October and by 22% to 976,800 units in November from a year earlier levels.

Japanese automotive parts makers increased the import of cheaper Chinese AD12.1 under higher yen rate. Japanese industry sources expect domestic alloy makers order receipt will increase by 10% while import supply also increases by 10%.

With the cheaper import, automotive parts makers pressure on domestic alloy makers. The alloy makers try to keep the price level for September when they start the after shipment talk in late September.