Daiki Aluminum Industry, Japanese largest secondary aluminum maker, plans to continue output reduction in November. The production cut is scheduled by 15-16% or 4,500-4,800 tonnes compared with the same month of 2007. The firm's order receipt maintains decreasing due to slowdown of automotive market especially in October.

 

The firm completed replacement of a large-size furnace in Yuki plant, Ibaraki, Japan at the end of September. However, the operating rate is expected to stay low at around 76% for a while. The operating rate of Shinshiro plant, Aichi, Japan would become around 70-80% in November when the plant restarts commercial production. Shinshiro plant was halted during 11-19 October and is in test operation now.

 

Japanese secondary aluminum makers including Daiki Aluminum Industry widened output cut range in October since their order receipts declined. Daiki Aluminum Industry is controlling its output volume by furnace maintenance and replacement on ordinary business days, those which are implemented during the Year End and New Year holidays in usual years.

 

Daiki Aluminum Industry plans other furnace maintenance at its domestic plant in November and reduces secondary aluminum production. Summit Showa Aluminum, another major maker of secondary aluminum, also plans to keep output reduction for October-December by 15% year-on-year. Other secondary aluminum makers seem continuing production cut at almost the same range as well.

 

Domestic demand for secondary aluminum is expected to decline more when automobile market is in downtrend and cheaper secondary aluminum would be imported largely from Korea and China toward the year end. –Japan Metal Bulletin