ALCONIX to Diversify Secondary Aluminium Alloy Offshore Sources

ALCONIX Corporation tries to diversify the offshore procurement sources for secondary aluminium alloy ingot. The firm eyes sourcing from Switzerland and countries in Europe to reduce dependence on sources in China and Russia. The firm tries to improve the stable sourcing when the firm imports around 70% of around 5,000 tonnes per month of sales. The firm started the import of AD12.1 grade alloy from Nigeria in 2006 while the firm imported the alloys from China, Russia and Saudi Arabia. The firm provides the Nigerian alloy for domestic die-casting makers. The firm also imports alloy from South Africa at spot basis. The firm’s import from China represents around 60% of total import. The firm prefers the cheaper alloy increasing the dependence. However, the firm tries to reduce the Chinese weight to 50% of the import when the China could reduce the export volume by import restriction. Chinese secondary alloy offer price is apparently depending on aluminium scrap import price, not on primary aluminium ingot at London Metal Exchange. Russian suppliers shift to European market after European Union terminated import tariff for base metals. ALCONIX’s import from Russia decreases to 10% of the total import recently. The firm tries to secure new sources in Europe as a part of effort for the diversification.