Daewoo International to increase Primary Al from EMAL in 2011

Daewoo International Corporation, South Korea’s major trading house and POSCO’s subsidiary, will increase primary aluminium procurement from Emirates Aluminium (EMAL), UAE’s major smelter, by 71% to 120,000 tonnes per year in 2011 compared with 2010. Daewoo International’s official revealed to Japan Metal Bulletin in Gangneung City, South Korea.

Daewoo International purchased primary aluminium ingot from EMAL at total 70,000 tonnes in 2010. South Korea’s domestic demand for primary aluminium was estimated at approximately 1 million tonnes in 2010. The official person said the demand is likely to exceed 1 million tonnes in 2011.

One major factor is that Novelis Korea, South Korea’s major aluminium re-roller, continues full production. Novelis Korea procures primary aluminium ingot mostly from Daewoo International. Novelis Korea’s domestic rolling capacity is 600,000 tonnes per year while, Daewoo International’s official person said, the capacity would be raised to 900,000 tonnes until CY2013.

Another factor is favorable condition of South Korea’s car industry. Hyundai Motor is enjoying stable car sales in South Korea as well as active car export to North America. Daewoo International supplies primary aluminium to automotive component makers whose main customer is Hyundai Motor.