21 JUNE 2011www.platts.com
Japan aluminum alloy demand up as pace of automotive recovery quickens
Edited by : AL CIRCLE
2 min read
Japan's spot demand for ADC12 aluminum alloy picked up this week ahead of automotive output recovering to 80-100% rates next month, market sources said Tuesday.
The plant run rates over April-June slumped to 40-70% of the levels before the March 11 earthquake, but automakers are aiming for 80-100% run rates over July-September.
Each vehicle components maker is recovering at a different pace depending on car sales.
A transmission components maker for passenger vehicles, located in Aichi prefecture, said his run rate was lower at 70-80% this month but will be raised to 80-90% next month, while an engine components maker said his plant run rate was higher now.
A motorcycle manufacturer has returned to full rates this month and issued a purchase tender for 3,200 mt of ADC12 last week -- the biggest tender since the March 11 earthquake. The company bought a mix of domestically produced ADC12 as well as imports for delivery over July-August, said a Tokyo trader.
While there was no tender for more than 500 mt following the motorcycle maker's one, all plants are on a recovery track, and were placing orders for 100-500 mt lots with the delivery period stretching over July-October, traders said. A northwest Japan diecaster was asking for October deliveries eyeing a further ramp-up in Q4.
The plant run rates over April-June slumped to 40-70% of the levels before the March 11 earthquake, but automakers are aiming for 80-100% run rates over July-September.
Each vehicle components maker is recovering at a different pace depending on car sales.
A transmission components maker for passenger vehicles, located in Aichi prefecture, said his run rate was lower at 70-80% this month but will be raised to 80-90% next month, while an engine components maker said his plant run rate was higher now.
A motorcycle manufacturer has returned to full rates this month and issued a purchase tender for 3,200 mt of ADC12 last week -- the biggest tender since the March 11 earthquake. The company bought a mix of domestically produced ADC12 as well as imports for delivery over July-August, said a Tokyo trader.
While there was no tender for more than 500 mt following the motorcycle maker's one, all plants are on a recovery track, and were placing orders for 100-500 mt lots with the delivery period stretching over July-October, traders said. A northwest Japan diecaster was asking for October deliveries eyeing a further ramp-up in Q4.
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