Ye Chiu Group Suffered from Al Scrap Shortage in China

Malaysia based secondary aluminium alloy maker, Ye Chiu Group is suffered from material shortage at its productive subsidiary in China, Ye Chiu Metal (Taicang). Ye Chiu Metal (Taicang) cannot secure enough aluminium scrap from North America recently, the main aluminium scrap supplier to China, since metal scrap generation keeps low in USA. Ye Chiu Group is trying to increase scrap procurement from China and Southeast Asia.

A sales official of Ye Chiu Group accepted a telephone interview by Japan Metal Bulletin on Tuesday. Metal scrap generation maintains very low in US plants due to slow operations of manufacturing industry. Mix metal export from USA is largely decreasing, which is the main material for Chinese secondary aluminium alloy makers.

In addition, ship arrivals are recently delayed at Chinese quays. This delay also causes scrap shortage at the alloy makers. Ye Chiu Group’s official said container ship reservations are full from USA to Asia and, as a result, the ship arrivals tend to be delayed.

Meanwhile, secondary aluminium alloy demand is strongly increasing in China when automakers and aluminium die casting makers continue full productions. Ye Chiu Metal (Taicang) cannot meet the all orders due to material shortage.