Major Secondary Al Makers’ Export Plunges for Japan

World’s largest secondary aluminium alloy maker, Sigma Group expects the export for Japan significantly decreases for May due to impact of the major earthquake. Chinese major secondary aluminium alloy maker, Ye Chiu Metal Recycling (China) expects the export for Japan would remain low at least for 6 months when Japanese automobile output slows.

Sigma Group’s chairman and chief executive officer Tony Huang said the group has no new secondary aluminium alloy order from Japanese users after the earthquake. He said the users ask Sigma to delay shipment for existing order. He expects Sigma Group’s secondary aluminium export for Japan was about 8,000 tonnes in March. The export would decrease to 5,000-7,000 tonnes for April and to around 5,000 tonnes for May.

Ye Chiu Metal Recycling has exported around 10,000 tonnes of secondary aluminium ingot per month for Japan. However, the firm’s export for Japan also decreases due to the impact of the earthquake. The firm increases the shipment for China and Southeast Asia to cover the export decrease for Japan.

Japanese major secondary aluminium maker, Daiki Aluminium Industry also has no order from domestic users while the firm purchases secondary aluminium ingot from its affiliated company, Delta Aluminium Industry in China and Sigma Group to sell in Japan.

Overseas secondary aluminium alloy price stays high while Japanese users stop purchasing. Sigma Group’s export offer price for Japan is US$ CIF 2,550-2,570 per tonne for AD12.1 and the other major makers’ price is CIF US$ 2,440-2,460. Russian base metal makers’ export offer price is US$ CIF 2,250-2,270 for AK5M2. The export price would increase more when primary aluminium price is increasing and aluminium scrap price surged in North America under strong demand for China.