Japan Primary Aluminium Ingot to Drops by 50 yen/kg in Jan-Mar

Japanese domestic price of primary aluminium ingot decreased by 50 yen per kilogram for January-March from October-December, which represents decreases for 3 quarters in a row. The price, which is base of aluminium rerollers’ selling price of rolled products, reflects higher yen rate and lower offshore ingot market. The rolled products buyers are likely to hold the order and wait the price would decrease. Japanese primary aluminium ingot price decreased by 10 yen per kg each in July-September and October-December after the total 60 yen increase in January-June. Offshore aluminium ingot price decreased to less than US$ 2,600 per tonne while foreign exchange rate of yen increased to less than 110 yen per US dollar compared with 124 yen in summer. The domestic primary aluminium ingot price decreased to less than 350 yen per kg. Japanese rolled aluminium makers expect the users put off the new order and will buy more in and after January. The makers try to meet the higher order in January despite of the fewer operating days. On the other hand, Japanese premium of primary aluminium ingot is likely to settle at around US$ 65 per tonne for January-March, which is same level as October-December. The suppliers offer to leave the premium unchanged and the Japanese buyers are likely to accept the offer as early as the week.