Osaka based Japanese major aluminium foil maker, Nippon Foil Mfg announced on Friday the firm increases the selling price of all aluminium foil items by more than 70 yen per kilogram for March shipment except for items with aluminium ingot price reflection system to cover higher aluminium price. The firm tries to pass higher cost price on the selling price while the firm reduces the cost by integrating sales sites. The firm increased the selling price by around 60 yen per kg each in March and July 2006. The firm tries to cover higher aluminium cost through the additional hike when aluminium cash price exceeds US$ 2,900 per tonne at London Metal Exchange. The domestic primary aluminium price also increases to more than 400 yen per kg though the firm expected lower price before. The firm tried to reduce cost through every efforts including higher yield. The firm decided the additional hike when the firm cannot cover all of higher cost including energy and subsidiary materials along with aluminium ingot only by own effort. The firm persuades the users to accept the hike for stable supply. The firm also tries to introduce the price mechanism to reflect aluminium ingot price change for users without such price agreement. The firm closes sales sites in Sapporo, Sendai and Fukuoka on March 1 to reduce the operating cost. The firm integrates the sales force into headquarters offices in Osaka and Tokyo including the employees to cover some of the higher cost.
Japan Steel Scrap Composite Prices (Sangyo Press)
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