Slow Auto-Parts Demand Cuts November Secondary Al Alloy Price

Secondary alloyed aluminium makers concluded after shipment price talk with automobile parts makers to reduce the alloy price by 2-3 yen per kilogram around Tokyo for November. Lower offshore aluminium market price impacted on the price. One major alloy maker source sees the output would decrease by around 10% from original plan in December due to the impact of the flood in Thailand on the domestic automobile industry. Some makers’ order decreases due to increase of the import from China.

Automobile parts makers tried to reduce the secondary alloyed aluminium price by 3-5 yen per kg for November shipment. The users focused on lower primary aluminium price and aluminium scrap price since October.

Industry sources see the alloy market price would decrease in December with expectation for lower aluminium scrap price. Major alloy makers would keep the production in December as late November level while some makers reduce the output due to the impact by the flood in Thailand.

However, low-priced alloy import from China could impact on the makers’ output. The import hit the record of 52,000 tonnes in October. The import price is as low as slightly more than 190 yen per kg for AD 12.1 grade. One trading firm source sees the import would be more than 45,000 tonnes in December. Such high level import could reduce order for domestic alloy. The source sees smaller makers would have to keep production cut due to the import.