Aluminium Scrap Orders Increase in West Japan

Aluminium scrap orders are increasing in West Japan. Some of Japanese secondary aluminium alloy makers are increasing productions at their plants located in Central and West Japan, when their plants in East Japan were partially damaged by earthquake.

Secondary aluminium alloy makers are facing several difficulties in recommencement of their plants in East Japan even without serious damages on production facilities. Negative factors are planned power outage, water supply stop, and fuel shortage for furnaces. Additionally, some of alloy makers incorporated aluminium scrap procurement from North Japan into their output plans. Thus these alloy makers may suffere from material shortage even though they could restart operation.

Alloy makers’ plants in Central Japan and West Japan are in normal operations. At these plants, material procurement is mainly from West Japan or the Sea of Japan side while there are available capacities to cover damages in East Japan. Some of alloy makers started to increase output at plants in Central Japan and West Japan for demand recovery in the near future.

A scrap dealer source in West Japan said secondary aluminium alloy makers are ordering scrap supply volume increase, and the dealer is aggressively purchasing aluminium scrap. Aluminium scrap is also ordered from around Tokyo at smaller volume but scrap carriers decline the orders in most cases due to confused traffic and fuel shortage.