Secondary Al Price Raised by 6-7 yen/kg for Dec Shipment in Osaka

Secondary aluminium makers and die casting makers around Osaka seemed to almost agree in the hike of secondary aluminium ingot by 5-10 yen per kilogram, averagely by 6-7 yen, for December shipment compared with the previous month. Secondary aluminium makers said die casting makers approved to raise their purchasing prices by total 10 yen per kg for November-December. As a result, die casting makers’ purchasing price increased to 299-304 yen per kg for AD12.1 grade in small lots in Osaka.Secondary aluminium makers offered die casting makers the hike by more than 15 yen per kg for December shipment when secondary aluminium demand keeps very strong while aluminium scrap supply is tight and their scrap purchasing costs surges up in winter season. They also tried to pass the cost expansion for fuel and sub materials. Die casting makers disapproved such a range of the hike since primary aluminium market was weak. The actual hike resulted in the range of 5-10 yen per kg and averagely by 6-7 yen.Secondary aluminium makers are likely to offer the hike by more than 15 yen per kg again for January shipment. They explain that crude oil, metallic silicon and magnesium prices are surging up and that Chinese government raised the export tariff for metallic silicon by 10% in January.