Secondary alloyed aluminium makers concluded the price negotiation with the users including die-casting makers to keep the price for June shipment around Tokyo. The alloy makers sought hike while the users resisted the hike citing drop of aluminium raw materials market since late June. Some alloy makers tried to secure sales volume at the cost of value. Alloy makers around Osaka also concluded the price negotiation with the users to keep the price for June shipment.Some observers expect the alloy makers’ profitability gets worse with the settlement compared with last year. Their cost is flat despite of 3-5 yen per kilogram down for aluminium scrap due to higher cost for silicon and additives and energy. The makers try to seek higher price again for July shipment. Some interests concern alloy demand could decrease when domestic automobile sales decreased by 11.2% in June from a year earlier and the sales shit to smaller cars with less aluminium consumption. However, the demand is likely to keep firm due to high level production for automotive parts for export. The domestic demand could also increase due to slower high priced import in July-September.
Japan Steel Scrap Composite Prices (Sangyo Press)
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