Higher Automobile Output Lifts Japan Al Alloy Operation

Japanese major secondary alloyed aluminium makers including Daiki Aluminium Industry and Summit Showa Aluminum will increase the operation rate to 80-90% in June compared with a year earlier level. They increase the production to meet recovering automakers’ production while the alloy makers’ production was averaged 70%. However, some of alloy makers’ production is still 50-60% level.

Japanese major automakers reduced the domestic production to less than 50% of the normal level during the parts supply disruption after the major earthquake. With better parts supply, the major automakers increase the production in June to 90% level of original plan. Other domestic automakers also normalize the production earlier than expected.

The higher automobile production lifts the alloy demand. Daiki Aluminium Industry said the order receipt for June is around 80% level. Summit Showa Aluminum said the order could reach near 90% under the current situation.

However, some smaller sized alloy makers are still operating at lower rate when some of die-casting makers use imported ingot first even by reducing purchase of domestic alloy. An alloy maker said the order would recover in and after July.

Daiki Aluminium Industry keeps normal operation at Shirakawa plant in and after July while the plant reduces the power consumption by 15% through lower operation of electric machinery. The firm shifts the operation from weekday to weekend at Yuki plant. Summit Showa Aluminum is still planning for energy saving solution for Chiba plant and Ibaraki plant.