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Japan's Daiki Still Buying Alloy From China Despite Demand Slump

  • Tuesday, February 10, 2009
  • Source:

  • Keywords:silicon metal, alloys
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Japanese secondary aluminium smelter Daiki Aluminium Industry plans to continue importing aluminium alloys from China's Sigma Group despite slowing alloy demand for automobiles, a company official said Tuesday.
 
     Daiki Aluminium Industry and Sigma entered into a partnership in 2004, establishing a joint venture, Daiki-Sigma Engineering, which sells alloy smelting equipment.
 
     Daiki also started to source aluminium alloys from Sigma, as Japan at the time required imports to cope with robust alloy demand from its automotive sector.
 
     The recent slump in the automotive industry forced Daiki to reduce its operating rate to less than 50% in February, but the company continues to import from Sigma, the company official in charge of accounting said.
 
     "The import quantity had fallen, but it has not stopped," the official said.
 

     Daiki is Japan's largest secondary aluminium smelter with a total production capacity of over 300,000 mt/year, while Sigma, the largest smelter in China, has a total capacity of roughly 500,000 mt/year. (Source: Platts)

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