Nikkei MC Aluminum to Raise Operation Rate in April-June

Tokyo based major secondary alloyed aluminium maker, Nikkei MC Aluminum expects the operation in April-June increases to around 70% of the normal level, which is 20 percentage points higher than January-March. The production increases recently when the firm tries to meet higher spot order for AD12.1 alloy. The operation rate reached 80% of normal level at Mie plant. The demand recovery improves the operation in price as well when the firm succeeded major price hike for spot order in May.

The firm got higher order from die-casting makers and automotive parts makers since April. The buyers shift to domestic materials when Chinese alloy price surged.

The firm improves the operation rate by using return scrap from the plants while the other alloy makers are still operating at around 40% of normal level when the makers cannot meet the spot order due to limited supply of aluminium scrap. The firm increased the production to 3,200-3,300 tonnes per month at Mie plant since April due to higher demand in Nagoya area while the operation rate is around 70% at Tochigi and Shizuoka plants and around 50% at Aichi and Nagano plants.

The firm already increased the spot price by 20 yen per kilogram in May while the price was lower in April. The firm expects the spot price could increase more when aluminium scrap market increases.