Japan Secondary Aluminium alloy Import Keeps High from China

Japanese secondary aluminium alloy import is increasing from China. The import was 40,840 tonnes in August, increasing by 13% from a year earlier and by 21% from July, according to Ministry of Finance. Several Japanese trader sources say the import is likely to maintain high level at around 40,000 tonnes per month until December at least.

Toyota Motor’s domestic completed car production is estimated to increase by 22% to 919,000 units for October from a year earlier, by 21% to 971,000 units for November and by 18% to 880,000 units for December.

Several sources of Japanese secondary aluminium alloy industry recognize domestic alloy makers’ production would not increase as much as Toyota’s output expansion. They are concerned that domestic alloy makers’ order receipt volume and Japanese alloy import volume would increase by around 10% from a year earlier by each.

Japanese major secondary aluminium alloy makers including Daiki Aluminium Industry comment their order receipt volume is steadily increasing despite of import expansion. Automotive component makers are likely to keep large volume offers against domestic alloy makers within this year. One alloy maker suggested possible expansion of the offer volume.

Meanwhile, Japanese secondary aluminium alloy import is also increasing as expected. The total import was 91,831 tonnes in August increasing by 4.5% from a year earlier, and the import from China increased by 13%. More than 70% of the import from China seems to be die casting alloys such as AD12.1 grade. The unit price was 189 yen per kilogram. In some cases, the price is said to hit below 200 yen even including traders’ margin and freight. THe price is much lower than domestic alloy price.

Middle- and small-class Japanese alloy makers are impacted by import increase from China. Several sources point out many middle- and small-class alloy makers are forced to reduce operation rate due to the order decrease. Major Japanese alloy makers are also affected by low price of Chinese alloy in recent price negotiations with users.