Emirates Aluminium (EMAL) of United Arab Emirates expands the presence in Japanese primary aluminium market. The buyers appreciate the high value with more than 99.9% purity and 1% or less ferrum and silicone content, which is better than ingot from Australia and South Africa. A buyer source said the ingot from EMAL is attractive when EMAL guarantees the high quality but doesn’t charge premium.EMAL, which is joint venture of UAE’s largest aluminium smelter, Dubai Aluminium (DUBAL) and Abu Dhabi government owned investment company, Mubadala Development (MUBADALA), exports the ingot to Japan through Itochu Corporation. EMAL has DUBAL’s DX technology in the all smelters starting the operation in December 2009. EMAL produces P1020 with 99.7% or more aluminium and other products. An industry source said EMAL’s P1020 products contain 99.9% aluminium while Japanese popular ingot from Australia and South Africa contains just less than 99.9%. EMAL started the quarterly based supply to Japan in July through Itochu Corporation. The firm provides ingot to transplants of Japanese manufactures in Southeast Asia and India. A source in Japanese light metal reroller, which purchased EMAL’s ingot at spot basis, said the company intends to have supply contract for the excellent quality ingot. Aluminium smelting capacity has increased in a year through expansion and green field projects in Middle East by utilizing the low cost electricity while smelters in Europe and North America are in lower operation rate due to higher electricity cost and lower market price. EMAL is one of the new projects including Sohar Aluminium in Oman and Qatalum in Qatar. Itochu Corporation plans to sell 40,000 tonnes of ingot mainly for P1020 from EMAL in 2010 and plans to expand the sales to 150,000 tonnes in 2013. Some light metal rerollers already reduced purchase for high premium charged Australian ingot shifting to EMAL ingot.
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