Some domestic aluminum alloy plants have no choice but to export to domestic sales

Japan Disaster-Resistant Automobile Factory Requests Delayed Delivery———

“New orders have not grown in recent days, and individual automobile manufacturers that have already placed orders have also requested delayed delivery for about two weeks or so. The specific situation will not be confirmed until the status of the nuclear power plants is stable.” Yesterday, Yeh Qiu Metal Resources Renewed (China) Co., Ltd. Co., Ltd. (hereinafter referred to as "Jiangsu Yiqiu"), the sales manager of sales and marketing, told the "First Financial Daily" that the suspension of production of some automobile plants and parts factories caused by the strong earthquake and tsunami in Japan directly affected the use of whole vehicles and parts and components plants. The main export of domestic aluminum alloy enterprises. At present, the company has already transferred some of its original export products to the domestic market for sales.

The export market is blocked Japan is the largest export market of Jiangsu Yiqiu, 30% to 40% of its products are exported to Japan, and it is the first-tier supplier of major automobile manufacturers in Japan.

Liu Kaixi told reporters that the delivery time of aluminum alloy ingots exported to Japan by the company is generally about two months, and it will mainly be used for the engine casing, gearbox and wheels of automobiles. However, after the earthquake in Japan, new orders from Japan have not grown in recent days, and some automakers that have already placed orders have also requested delayed delivery.

"At present, the undamaged part of Japan's three major auto plants has begun to resume work. However, subject to restrictions and raw material sources and transportation, the operating rate is still relatively low, at about 60%." Liu Kaixi revealed that the eastern region is mainly affected by radiation and electricity recovery. The impact is expected to range from 30% to 50%.

Liu Kaixi also pointed out that some Japanese automakers are also considering that if spare parts are in short supply, orders will be sent overseas.

For the temporary suspension of the largest export market, Jiangsu Yiqiu also has its own countermeasures. The additional output that is currently blocked by exports will be sold to the domestic market. At present, domestic auto makers have not been affected much at the moment, and orders are still relatively normal.

“Before the financial crisis in 2008, 80% of our products were exported, and only 20% were sold domestically. At that time, we realized the fragility of foreign markets and the huge demand from China. So in 2009, we began to do a sales strategy transformation. The domestic market has been continuously developed for two years, so although export prices are currently slightly higher than domestic prices, we have already maintained exports of 50% of products and 50% of domestic sales,” Liu Kaixi told reporters. In addition, the company is still paying attention to diversification. Customers and industry development, currently 57% of products are supplied to automobile companies, 20% of products are supplied to electronics companies, and 20% of products are sold to home appliance companies.

Supply chain cascading effect Jiangsu Yiqiu’s encounter is not a special case. As the affected East Japan region has concentrated on Japan’s famous large-scale automobile manufacturing plants and parts companies such as Toyota, Honda, Nissan and Suzuki, many domestic recycled aluminum companies are already in control. Export to Japan.

According to customs statistics, in 2010, China exported a total of 560,800 tons of aluminum alloy ingots, of which exports accounted for about 54% of total exports, which accounted for the largest proportion.

According to the latest research report of Shanghai Nonferrous Metals (SMM), due to the suspension of production by downstream customers and the closure of some ports in Japan, the export of Japanese aluminum alloy ingots from domestic reclaimed aluminum enterprises has declined. Because the downstream component companies all have a certain stock of aluminum alloy ingots, it is expected that Downstream companies will not concentrate on purchasing after they resume production. At present, some manufacturers can only sell aluminum alloy ingots originally intended for export to Japan or other countries. If Japanese downstream companies cannot recover quickly, the prices of aluminum alloy ingots in the future will face significant pressure. The report also revealed that Japan not only imports from China. Aluminum alloy ingots also import parts of aluminum alloy ingots from countries such as Russia and Ukraine. After the earthquake in Japan, aluminum alloy ingots exported to Japan by reclaimed aluminum suppliers in Russia, Ukraine, etc. were also affected, and they could not be exported. In Japan, the backlog of goods was launched into the European market.

As Japan is the core component manufacturing site for Japanese cars and other countries' automakers, parts factories cannot function normally, and they may also have a certain influence on the supply chain of cars manufactured outside Japan, which may also affect aluminum alloy ingots. Supply to other car manufacturers.

According to report, the demand price of the aluminum alloy market is relatively weak, and the price has fallen by about RMB 150/t compared with that before the earthquake. However, for manufacturers, due to the increase in processing costs such as manpower and oil prices, raw materials such as aluminum scrap are also increasing. Prices are also rising, so the price of aluminum alloys is still relatively strong.