Japan Secondary Aluminium Alloy Makers to Hike Processing Charge

Japanese secondary aluminium alloy makers including Daiki Aluminium Industry started to offer price hike for their processing charge by more than 10,000 yen per tonne against the users to reflect productive cost expansion such for crude oil price and metallic silicon.Daiki Aluminium Industry, Japanese largest maker of secondary aluminium alloys, estimated its productive costs upped by total 6,100 yen per tonne compared with 3 years ago, 3,700 yen of which comes from the upsurge of heavy oil price, 550 yen from supplies expenses including chlorine, flux, caustic soda, kerosene, light oil, gasoline and liquefied petroleum gas, 800 yen from industrial waste handling costs for black smoke dust and 1,000 yen from distribution costs. The firm started to offer hike for its processing charge by 6,100 yen per tonne in August of this year.Additionally the international price of metallic silicon, a sub material for secondary aluminium alloys, is sharply surging up. The offer price is increasing to US$ 1,620 for October-December 2007 from US$ 1,100 for January-March 2007, up by 70,000-80,000 yen per tonne. Japanese secondary aluminium alloy makers estimate the cost upsurge would become minimum 4,900-5,600 yen per tonne for 7% metallic silicon additives.The secondary aluminium alloy makers will offer total 11,000 yen per tonne hike, 6,000 yen of which is for productive cost expansion and 5,000 yen for sub material costs.