Nikkei MC Aluminium to Keep High Operation in 2HF2010

Japanese major secondary aluminium alloy maker, Nikkei MC Aluminium, plans to keep high operation in the second half of fiscal 2010 ending in March 2011. The firm’s sales volume in the first half is estimated at 118,500 tonnes, increasing by 16% year-on-year based. The domestic sales volume is expected to increase by 8% to 71,200 tonnes while the overseas sales to increase by 30% to 47,300 tonnes. For the second half, the firm forecasts 114,100 tonnes sales, decreasing by 6% year-on-year. The domestic sales volume is forecasted to decrease by 8% to 68,100 tonnes and the overseas sales to decrease by 5% to 46,000 tonnes.

Nikkei MC’s domestic plants have kept high operations in the first half of fiscal 2010. The order receipt volume in September was as much as in August. Mie plant and Kota plant are in full production. At overseas, the plants in USA, Thailand and China continue full production.

In the second half of fiscal 2010, domestic car demand is likely to decline due to the end of Japanese government’s stimulus program for eco friendly cars. Meanwhile, Nikkei MC is expected to be saved from serious impact of car demand downturn since Nikkei MC’s output rate of common grade AD12.1 is 30-40% at the domestic plants, lower rate than other Japanese secondary aluminium alloy makers.

Overseas operations are expected to maintain steady in the second half year thanks to strong car sales growth in emerging countries including China and Thailand. Japanese automakers have recently increased local material procurement at their offshore sites. Thus Nikkei MC’s sales have increased for original alloys.