Japan Secondary Al Shipment Keeps Stable in September

Japanese secondary aluminium and aluminium alloy ingot production increased by 3.1% to 68,672 tonnes in September from a year earlier while the shipment increased by 1.1% to 68,858 tonnes, according to Japan Aluminium Alloy Refiners Association. Both production and shipment represented year-on-year increase for 10 straight months while the range has gradually narrowed month by month.

The shipment for die casting represented first year-on-year decrease since November 2009. Demand for Japanese ingot weakened due to large volume inflow of offshore ingot made in China and other countries when yen exchange rate strengthened. Meanwhile, the shipment for casting maintained increase for 10 straight months. Market demand for casting products shows stable because of better durability and processing accuracy compared with die casting products.

As to material procurement by Japanese secondary aluminium makers, purchasing volume of domestically-produced base metal was high. Russian base metal suppliers raised their offer price and the users’ demand increased for Japanese base metal.