Japan Secondary Al Makers Follow Demand Recovery in Fiscal 2H

Half-fiscal-year output of Nikkei MC Aluminum, Japanese major secondary aluminium alloy maker, totaled 102,300 tonnes for April-September 2009, down by 27% from the same period of fiscal 2008. Domestic output lowered by 29% to 65,900 tonnes while overseas output shrank by 23% to 36,400 tonnes. The firm selected orders by profitability and, as a result, domestic production volume became lower than initially planned.

The firm plans annual output at 211,300 tonnes for fiscal 2009 ending in March 2010, down by 6% from fiscal 2008 and by 9,700 tonnes from initially planned. Domestic output is estimated at 130,900 tonnes, down by 13% year-to-year, while overseas output at 80,400 tonnes, up by 8% year-to-year. Secondary aluminium production is rapidly recovering at overseas, mainly in China.

Summit Showa Aluminum, another Japanese major maker of secondary aluminium, sold primary and secondary aluminium alloy at total 52,000 tonnes for April-September 2009. The operation rate recovered to 70% for July-September from 60% for April-June. Market demand for secondary aluminium alloy turned upward along automakers’ output recovery.

Summit Showa Aluminum supposes market condition is still unforeseeable for October-December, though the firm previously expected the demand could recover more than in July-September. The demand actually keeps flat at present from July-September. The firm forecasts the demand volume would sustain 70% level compared with fiscal 2007 due to small car trend and automakers’ operation shift to overseas.