Japan Secondary Al Alloy Makers and Users Agree in 3 Yen/kg Price Down for August

Secondary aluminium alloy makers and alloy users around Tokyo agreed to set alloy price unchanged or lower the price by 2-3 yen per kilogram for August shipment. Around Osaka, alloy makers and users agreed in price down by 3 yen, which is the first price down since June shipment. The price negotiations reflected current increase of cheaper alloy import as well as weak trend of primary aluminium and aluminium scrap market prices.

Secondary aluminium alloy makers around Tokyo offered to maintain the alloy price unchanged from July shipment. Alloy users, mainly die casting makers, requested price down by around 5 yen per kg.

Domestic primary aluminium ingot price has decreased by around 20 yen per kg in the late month. Then aluminium scrap market price lowered by 10 yen per kg for high grade scrap and by 5 yen per kg for low grade scrap in mid-late August. Additionally import of AD12.1 grade alloy has recently increased from China at low price of 205-208 yen per kg under strong yen trend.

Finally the price negotiations concluded in price down by 2-3 yen for relatively expensive alloy ingot or setting the price unchanged for August shipment. Alloy price may continue to decline for September shipment since arrivals of cheaper offshore alloys are likely to increase more.

Around Osaka, aluminium scrap market price downed by 7 yen for high grade and by 3 yen for low grade. Then secondary aluminium alloy users strengthened price down offers against alloy makers. Demand for secondary aluminium alloy is currently increasing along rapid output recovery in car industry. However, alloy makers cannot raise the selling price easily if the indicator, primary aluminium price at London Metal Exchange, weakens.