Japan Secondary Al Alloy Makers to Keep Reducing Metallic Silicon Stock

Japanese major secondary aluminium alloy makers of Daiki Aluminium and Summit Showa Aluminum decided not to purchase metallic silicon 553 for April-June as January-March. They focus on inventory adjustment when the overstocked metallic silicon consumption decreases under major production cut.

Chinese metallic silicon export to Japan decreased by 80% to 3,978 tonnes in January from a year earlier, according to Chinese statistics. The export to Japan decreased every month since November when Japanese alloy makers were in major production cut.

Chinese offer price is C&F US$ 1,700 per tonne for 553 grade to Japan, which increased by US$ 100 in a month. Japanese trading firm source sees the higher offer reflects recover of Chinese domestic demand.

Chinese major metallic silicon makers stopped the part or all of the operation in and after autumn. An industry source estimates the Chinese operation rate is still 30-50% of the peak.

Chinese metallic silicon offer price hit US$ 2,200-2,300 per tonne in last summer. Japanese alloy makers tried to secure the material and Chinese export increased to more than 20,000 tonnes in 5 months through October 2008.