Japan Secondary Al Alloy Import Expands from South Korea

Japanese import of cheap secondary aluminium alloy has sharply increased from South Korea and China since this spring. The import from South Korea was 6,526 tonnes in June, about 2.7 times from a year earlier, and the import from China was 26,838 tonnes, about 2.1 times year-on-year, according to the trade statistics announced by Ministry of Finance on 30 July. The import price seems at around 280-290 yen per kilogram, cheaper than Japanese market price, and lowers the domestic alloy price.A Japanese dealer source said most of recent imports seem to be contracted during March-April when Japanese yen was stronger against US dollar. Another background is that secondary aluminium alloy supply recently became surplus against the demand in South Korea due to slowdown of automobile market.Japanese secondary aluminium alloy makers are impacted by cheaper imports. Domestic makers’ AD12.1 selling price declined to around 305 yen per kg for June shipment, purchased by end consumers on 120-day sight drafts. The price downed for the first time in late 6 months.Japanese dealers expect the import would decrease toward October-December. Domestic demand for secondary aluminium alloy is likely to weaken due to the sluggish auto market in USA. In addition, alloy price is currently surging in South Korea with auto market recovery in the country. Alloy import, especially from South Korea, could decrease soon.