Showa Denko announced on Monday the firm raises the rolling charge for aluminium plate and extrusion by 10-15% effective for shipment on and after June 1, 2008. The firm will put the higher productive costs such for oil, additive metals and packaging materials as the additional rolling charge.The firm previously raised the rolling charge in January 2007. Even after the previous hike, costs have surged up for oil and sub materials. The firm has been suffered from worse profitability. Market price of magnesium, one of the sub materials, has more than doubled in the late year. Chinese offering price exceeded US$ 5,000 per tonne and seems to continue surging more. China represents 80% of the global magnesium supply.Showa Denko has tried to cut productive costs inside the group by the material shift and productivity improvement. For example, the firm changed the fuel for melting and casting furnaces at Oyama plant to natural gas. However, the firm could not absorb the higher material and distribution costs by themselves.The firm tries to make the price hike approved early by the customers in order to keep the stable supply. The firm starts individual price negotiation with each customer based on each existent contract.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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