Japan Alloyed Aluminium Makers to Offer Over 10 yen/kg Hike

Japanese secondary alloyed aluminium makers will offer more than 10 yen per kilogram of hike for June shipment at negotiation with die-casting makers and other users. The aluminium suppliers try to cover higher cost for heavy oil and metallic silicon along with historical cost up. However, the suppliers could face resistance of the users under expectation for lower aluminium price and for lower alloyed aluminium demand. The alloy makers kept the price for May shipment while they offered more than 10 yen per kg hike. The price is estimated to be 309-314 yen per kg for AD12.1 alloy with 120 days note payment around Tokyo. The alloy makers try to improve the profitability through wide hike for June shipment while aluminium scrap market is expected to decrease and alloyed aluminium demand slows down. International aluminium future market decreased to less than US$ 2,900 per tonne at London Metal Exchange. Japanese aluminium scrap supply gets easier when rolled aluminium makers reduce the purchase volume. The aluminium scrap price is expected to decrease in late June. Japanese secondary alloyed aluminium output in April hit first drop in 9 months while the shipment decreased for 2 months in a row. The makers reduce the operation due to slowed automobile demand in North America. Some makers expect the demand could recover when auto parts export will recover for North America and offshore market.