Delta Aluminium to Start Alloy Casting Material and Primary Alloy Production in October

Delta Aluminium Industry, Chinese secondary aluminium alloy maker headed in Guangdong, starts production of aluminium alloy casting material and primary aluminium alloy in late October. The company introduces a new 12-tonne melting furnace dedicated to alloy casting material within October. As a result, Delta’s output capacity will increase by 13% or 1,000 tonnes per month and reach 9,000 tonnes per month as total. Daiki Aluminium Industry, Japanese largest secondary aluminium alloy maker, holds 20% shares in Delta.

Delta mainly produces AD12.1 grade secondary aluminium alloy for die casting at 7,000-8,000 tonnes per month. Daiki purchases about 80% of the alloy and supplies the alloy to the consumers in Japan and Southeast Asia. Delta sells the alloy in Chinese market at 800 tonnes per month, mainly to Japanese customers.

Car sales growth has currently slowed down in China. Economic growth is braked by Chinese government’s tight monetary policy while car purchasing is regulated in large cities such as Beijing to relieve vehicle congestion. Moreover, tax reduction program for small cars haws recently ceased.

However, Chinese car market still keeps gradual expansion. Secondary aluminium alloy consumption is also expected to keep increasing trend. Car makers of Japan, Europe and the U.S.A. are aggressively raising their local car productions in China. Thus demand is increasing for aluminium casting alloy material, primary aluinium alloy and custom alloys year by year.