Daiki Aluminium to Expand Al Scrap Sourcing in Latin America

Daiki Aluminium Industry’s North American subsidiary, Daiki International Trading expands aluminium scrap purchase in Mexico and other countries in Central and South America. The firm tries to expand the trade volume when the transaction gets lower after financial crisis while the major buyer of Chinese major secondary alloyed aluminium maker, Delta Aluminium Industry in Guangdong will increase the consumption.

Daiki International Trading, which trades mix metals scrap and copper scrap, trades near 2,000 tonnes per month recently after the volume decreased to 1,000 tonnes after financial crisis while the volume was stable at around 2,000 tonnes and the peak was 3,000 tonnes in 2007.

Daiki International Trading purchases aluminium scrap and mix metals in West Coast, Midwest and East Coast in USA traditionally. However, the firm started to purchase the metals in Mexico in 2009 when the scrap generation decreased in USA. The firm tries to develop the competitive source in Mexico and Central and South America and to secure annual 500-1,000 tonnes from those sources.

North American scrap generation decreased under slow economy. The mix metals generation also decreased when shredder and ferrous scrap generation decreases. The generation decreased to 30-40% of normal level just after Lehman shock. The generation recovered but is still around 60% of the normal level.

The demand increases in China and South Korea. Chinese secondary alloyed aluminium makers increase the consumption. The higher demand lifts the transaction price by 20-30% for mixed metals in 2-3 weeks.