Chip plant closure pressures Japanese car output

  • Market: Metals
  • 22/03/21

Japanese car production is expected to come under more pressure over the coming months after a fire closed an automotive chip production line operated by Japanese chipmaker Renesas Electronics.

A fire hit a 300mm wafer line on 19 March at Renesas' semiconductor chip manufacturing plant in Ibaraki prefecture's Hitachinaka, closing the production line for a month. About two thirds of the advanced 300mm wafer line is designated for automotives. The plant's 200mm wafer line is operating normally.

Renesas aims to resume the 300mm wafer line production within a month. But shipments of the chips could be affected as the company reported difficulty in immediately producing replacement products because of a recent increase in demand for semiconductors.

The output halt at Renesas is dealing a further blow to Japanese carmakers at a time when they are already struggling with a global shortage of semiconductor chips. Domestic car output had declined for a third straight month in January following an earlier recovery from lows of April-June 2020 during the Covid-19 pandemic.

Japan's car output recovery has also restored steel demand from a pandemic-driven manufacturing slowdown. Crude steel production remained down on the year but continued to recover on the month until January because of firm demand from carmakers.


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28/03/24

Europe plate: Imports weigh on EU prices

Europe plate: Imports weigh on EU prices

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Taiwan scrap imports fall 13pc on year in February


28/03/24
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28/03/24

Taiwan scrap imports fall 13pc on year in February

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Japan’s SMM eyes Li-ion battery recycling plant by 2026


28/03/24
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28/03/24

Japan’s SMM eyes Li-ion battery recycling plant by 2026

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Centaurus' Jaguar Ni mine in Brazil eyes 2027 output


28/03/24
News
28/03/24

Centaurus' Jaguar Ni mine in Brazil eyes 2027 output

Singapore, 28 March (Argus) — Australian mining company Centaurus Metals said that its Jaguar nickel sulphide project in Brazil is undergoing a feasibility study and aims to start production in mid-2027. Jaguar, bought from Brazilian mining firm Vale in 2020 , is estimated to hold 109mn t of 0.87pc grade nickel for an estimated 948,900t of contained nickel. The nickel product will be largely targeted at the Atlantic market, with expectations that demand will strengthen in the region. "Demand for nickel we believe is not going away. And if you look at what's going to happen in the US and European markets in particular, nickel will probably be a bigger part of the battery composition than anywhere else," Centaurus' managing director Darren Gordon said at the Tribeca Futures Commodities conference held in Singapore on 26 March. "There's a huge amount of nickel that still needs to come into the market." Many Australian mining firms have struggled with a slump in global nickel prices earlier in the year because of a supply glut caused by increased volumes from Indonesia, coupled with a slowdown in demand. Several Australian mines have halted operations , while other processing facilities were placed on care and maintenance programmes . But Centaurus is hopeful that Jaguar will be able to compete on a cost and environmental basis with Indonesian supplies. "Nickel is going to continue be supplied out of Indonesia in very large ways so we are going to compete on costs. And we think that when we deliver the feasibility study, we will be able to demonstrate that we can compete on costs. But overlay on that, we have this very low carbon footprint associated with our project," Gordon added. Centaurus said Jaguar is one of the lowest carbon footprint nickel project globally, following a review done by a metals and mining ESG research company. Once operational, greenhouse gas emissions from the project are forecast to be 7.27t of carbon dioxide/t of nickel equivalent, which is assessed to be lower than 94pc of other global nickel production. By Sheih Li Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Automakers divert away from blocked Baltimore port


27/03/24
News
27/03/24

Automakers divert away from blocked Baltimore port

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