Mega Earthquake Affects Japanese Al Demand and Import

Tohoku-Pacific Ocean Earthquake and nuclear accident in Fukushima seem to be negatively effecting Japanese domestic demand and marine import of primary aluminium ingot. Japanese automotive component makers are deferring contracted ingot acceptance or significantly decreasing ingot procurement volume when Japanese automakers temporarily suspend car production and component orders significantly decrease. Meanwhile, a primary aluminium ingot bulker from Australia rejected scheduled ingot delivery to Yokohama port and called at Nagoya port in late March with a concern on radiation.

Japanese automotive industry’s demand for primary aluminium is largely decreasing when automakers temporary suspend its operation after the earthquake. One trader source told to Japan Metal Bulletin that many component makers are offering deferment of contracted aluminium acceptance after the earthquake. Another trader dealing primary aluminium ingot directly with automakers said most ingot deliveries were canceled in and after mid March. Some of users are moving to reduce ingot procurement for April, too.

Meanwhile, several trader sources deposed Gearbulk’s bulker from Australia delivered primary aluminium ingot to Nagoya port on March 20 though the delivery was originally scheduled to Yokohama port. Ingots were transported to Yokohama by domestic vessel.