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Japanese major secondary alloyed aluminum makers expand the production cut in December. The capacity utilization is estimated to be 60-70% now compared with around 80% in November. The operation could decrease more in January-March when major automakers reduce the automobile production.

 

Chairman Masaru Aoyagi of Japan Aluminum Alloy Refiners Association said the users cancel the orders one after another in December. The president of Summit Showa Aluminum expects the alloy makers could decrease more when automotive demand gets cooler. Die-casting makers try to reduce the materials inventory reducing the alloy makers' production more than actual demand.

 

Japanese secondary alloyed aluminum market price is expected to decrease. The price apparently decreased widely at tender by major automakers for January-March shipment.

 

Alloy makers are forced to experience low profitability period when they have high priced aluminum scrap inventory, which could take 3-4 months for consumption. They get delivery of high priced Russian AK5M2 grade base metal until January. –Japan Metal Bulletin