Secondary Al Production Recovers in Daiki’s Southeast Asian Plants

Secondary aluminium alloy production turned upward at Daiki Aluminium Industry’s plants in Thailand and Malaysia in April. At Daiki Aluminium Industry (Thailand), the monthly production is expected to reach above 2,000 tonnes in April and 2,200-2,300 tonnes in May from 2,000 tonnes during February-March. At Daiki Aluminium Industry (Malaysia), the monthly production is likely to increase to 1,000 tonnes in April and above 1,000 tonnes in May from 800 tonnes for February-March.

Secondary aluminium alloy market is recovering earlier in Southeast Asia than in Japan. The backgrounds are that inventory adjustment progressed at alloy users such as auto parts makers and that Malaysian major alloy maker is actively exporting secondary aluminium alloy to China and India.

Meanwhile, generation volume of aluminium scrap, the main material for secondary aluminium, is very low along economy deterioration. Supply and demand balance of aluminium scrap is tightening and the market price is gradually surging in and after March. Daiki (Malaysia) procures 40% of its aluminium scrap consumption from Malaysian dealers and the rest by imports from USA, Europe and Russia. The subsidiary’s secondary aluminium alloy selling price seems rising to follow higher aluminium scrap price.

Order receipt volume turned upward at Daiki’s subsidiaries in Thailand and Malaysia while their operation rate still maintains low. Operation rate stays as low as 30% compared with the peak at Daiki (Thailand) and 63% at Daiki (Malaysia).