Japan Secondary Al Shipment Impacted by Imports in January

Japanese secondary aluminium and aluminium alloy production totaled 63,890 tonnes in January, which was 2.4% lower than a year earlier level, according to Japan Aluminium Alloy Refiners Association. The shipment was 63,890 tonnes, which decreased by 4.9%. The production represented year-to-year minus for three months in a row. The shipment turned to year-to-year minus after two months. Secondary aluminium alloy import increased at low price under strong yen trend.

The shipment for all demand fields showed year-to-year minus other than the shipment for extrusion in January. Total demand has recovered for die casting and casting along with automobile industry’s increasing operations but shipment of domestic secondary alloy decreased due to low-priced imports.

The shipment for steel making showed the first year-to-year minus in six months in January when Japanese steel production kept year-to-year minus for eleven straight months. Secondary aluminium alloy is used as deoxidizing agent. Japanese secondary aluminium and aluminium alloy production for steel making was 2,392 tonnes in January, which was 23.7% lower than recent peak 3,137 tonnes in October 2011.

The shipment for flat products represented year-to-year minus for four months through January in the non-demand season.

As for raw material procurement, base metal procurement decreased by 28.6% to 4,898 tonnes in January from a year earlier. Compared with the previous month, the volume downed by 22.7%. Offshore base metal suppliers raised their offer prices against Japanese users while China’s secondary aluminium alloy ingot increased market in Japan.