Japan Al Re-rollers Concern on BHP Billiton and Rio Tinto Integration

Hiroshi Yao, chairman of Japan Aluminium Association and president of Mitsubishi Aluminum, showed a strong concern on oligopoly advancement in global primary aluminium market at a press conference held by Japan Aluminium Association on 26 September, which might be caused by BHP Billiton’s acquisition against Rio Tinto. Mr. Yao said the impact by the acquisition on aluminium industry would be less than steel industry but Japanese aluminium industry expects smooth antitrust investigations by European and Japanese fair trade commissions.Mr. Yao explained the total share of BHP Billiton and Rio Tinto would become 17% for primary aluminium ingot, 18% for alumina and 20% for bauxite. The integrated company may represent more than 25% in Japanese primary aluminium import. Japanese aluminium industry is afraid of negative effects on ingot price and supply, he said.As to another impact by US financial crisis and stagnant economy, Mr. Yao said the quantitative effects on demand and price of aluminium rolled products cannot be estimated clearly but the market trend should become even worse.