Secondary Aluminium Alloy Price Keeps Flat for May Shipment

Secondary aluminium alloy ingot makers and the users including die casting makers agreed to set the secondary aluminium alloy price unchanged for May shipment compared with April shipment around Tokyo. Primary aluminium price stays high which is the indicator for secondary aluminium price. However, local supply of secondary aluminium alloy became easier when some automobile makers around Tokyo are under slower production while secondary aluminium alloy makers do not adjust their output volume. The growth rate of aluminium die casting demand for domestic automakers is also slower than before.Secondary aluminium alloy makers around Tokyo tend to keep their output volume and put the sales volume before the price hike, according to a source of secondary aluminium alloy maker. The makers failed to raise their selling price for May shipment under the situations, although they offered the hike by more than 8 yen per kilogram for castings and by more than 10 yen per kg for die castings.Domestic primary aluminium price is increasing when overseas aluminium market stays high and the foreign exchange rate of yen is weak against US dollar. Domestic market price of aluminium scrap has surged up by about 5 yen per kg for high grade scrap and by about 3 yen per kg for low grade in May to follow the upsurge of primary aluminium price.Secondary aluminium alloy makers are suffered from higher material costs for aluminium scrap despite of the flat selling price of secondary aluminium alloy ingot. Additionally the makers have not passed the previous cost increase for fuels, transportations and sub materials on their selling price yet. The makers will offer the price hike again for June shipment.Secondary aluminium alloy price was also set unchanged in Osaka for May shipment from secondary aluminium alloy makers to the users such as die casting makers. The price seems around 305-313 yen per kg for small lot shipment of AD12.1 alloy.