Secondary Al Demand Slows for Deoxidizing around Osaka

Aluminium demand slows for deoxidizing agent around Osaka due to lower steel output. Local deoxidizing agent makers cannot make the money due to higher raw material cost with lower selling price.

Secondary alloyed aluminium ingot shipment was 6,097 tonnes for deoxidizing agent in December, which decreased for 2 months in a row in year on year basis, according to Ministry of Economy, Trade and Industry. The aluminium shipment slowed when steel output decreased for recent months.

The averaged aluminium selling price was 198 yen per kilogram in December, which decreased to less than 200 yen for the first time in 22 months. The price decreased for 8 months in a row from the recent peak of 217 yen.

The shipment and selling price of aluminium deoxidizing agent decrease around Osaka. However, market price increases for used beverage can and sash scrap due to higher primary aluminium ingot price and tight scrap supply.

Local deoxidizing agent shipment was less than 4,000 tonnes per month at the bottom after Lehman Shock, which was 55% lower than the peak. The shipment increased to more than 6,000 tonnes in second half of 2010 due to recovery of automobile output.