Daiki Aluminium Industry Enjoys RSI Production Recovery

Daiki Aluminium Industry, Japanese largest supplier of secondary aluminium, is rapidly recovering its RSI (re-melted scrap ingot) production this month. The operation rate is above 90% at Shirakawa plant, Fukushima, Japan and Kameyama plant, Mie, Japan in June, where Daiki produces RSI. Domestic aluminium re-rollers seem to be increasing RSI consumption as can material after they have finished inventory adjustment of primary aluminium ingot.

Daiki’s RSI operation rate had stayed at 60-70% until May due to fewer orders from aluminium re-rollers. Domestic aluminium re-rollers apparently consume much primary aluminium ingot as can material in order to reduce surplus material inventory. At the same time, the market price of UBC (used beverage can) had stayed at high level compared with other aluminium scrap until mid May. UBC is a main material for RSI.

Demand for RSI is expected to increase toward July. One background is that primary aluminium price is currently surging while UBC market price turned downward in early June. A source of Japanese RSI maker said re-rollers can gain more cost merit by RSI utilization than primary aluminium at the present price level.