Secondary aluminum alloy production turned upward at Daiki Aluminum Industry's plants in Thailand and Malaysia in April. At Daiki Aluminum 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 Aluminum 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 aluminum 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 aluminum alloy to China and India.

 

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