Japan Makers to Hike Premium for Primary Aluminium Alloy

Japanese secondary aluminium alloy makers aim to raise premium for primary aluminium alloy by more than 10 yen per kilogram. They will start announcement of the hike against alloy users including automakers. Alloy makers have been suffered from worse profitability since fuel and sub material costs have soared for oil, metallic silicon and copper.Alloy makers produce primary aluminium alloy with primary aluminium ingot furnished by alloy users, putting additives such as metallic silicon and copper, and melting along required specifications. Alloy makers receive premium as manufacturing charge for fuels and sub materials.A source of Japanese major alloy maker said their profitability became worse around 2 years ago and they have offered premium hike since August 2007. Some users approved the hike this year. However, productive costs have continued surging and, said a maker source, alloy makers aim another hike by more than 10 yen per kg.Especially metallic silicon price almost doubled to US$ 2,300 per tonne for April-June 2008 shipment compared with the corresponding period of 2007. Metallic silicon is put into 4C, a major grade of primary aluminium alloy used mainly for wheel materials, at 7% in all materials.