Japan Secondary Al Production Shows First Annual Down in 2008 since 2001

Japanese secondary aluminium alloy ingot production totaled 1.056 million tonnes through 2008, down by 7.5% from 2007, while the shipment totaled 1.068 million tonnes, down by 7.3%, according to Japan Aluminium Alloy Refiners Association. Both production and shipment represented the first annual decline since 2001. The shipment for die casting, the main application, decreased by 8.3%.

By February 2008, the monthly production had kept year-on-year increase for 31 straight months and the shipment for 33 continuous months. The shipment decreased by 1% in March 2008 from a year earlier, the first minus in 3 years, and both production and shipment became minus in April.

The actual demand dropped down in and after October along automakers’ wide output reductions. More than 80% of secondary aluminium alloy demand is related to automobiles. Japanese secondary aluminium makers started output cut in October and major makers’ operating rate became below 50% compared with the peak in December. Japanese secondary aluminium alloy production decreased by 46.5% in December from a year earlier and the shipment by more than 40%, too.