Higher Market Price of Rolled Aluminium Products in Tokyo

Market price of aluminium rolled products surged by 5-10 yen per kilogram at the dealers in Tokyo at the end of February from a month earlier, according to the seasonal survey for the members of Japan Light Metal Merchant’s Association. Dealers around Tokyo could complete their price hike since January to pass higher material costs for primary aluminium ingot. Some dealers seemed to reflect upsurge of cost prices on the reselling prices other than material costs when aluminium re-rollers raised their rolling charges. In Osaka and Nagoya the market price kept flat at the end of February from a month earlier.Domestic primary aluminium ingot price increased by 30 yen per kg for January-March trading from previous quarter. Rolled aluminium product dealers in Tokyo raised their reselling prices by 20-25 yen per kg toward the end of January to pass higher costs for primary aluminium. On the other hand, the dealers in Osaka and Nagoya could raise their reselling prices by 30 yen per kg within January.Shipment of aluminium rolled products is currently slow at dealers due to adjustment in semiconductor manufacturing equipment market. The users might procure aluminium rolled products more than immediate demand when domestic primary aluminium price increases by 30 yen per kg for April-June compared with January-March. However, the supply seems easy at present. The users recently tend to offer surplus orders after 20th of third month of a quarter.Most of domestic aluminium re-rollers hiked their rolling charges so far and aluminium rolled product dealers are necessary to put higher cost price on their reselling prices. The dealers are facing difficulties in the hike especially for large contract users.