Japanese major secondary aluminium alloy makers including Daiki Aluminium Industry aim to keep the alloy selling price unchanged for January shipment. The alloy makers expect the price is supported by bottom hitting domestic aluminium scrap market price and rebound of overseas primary aluminium market price. The alloy price negotiations with alloy users, mainly automotive component makers, will almost close next week.
The alloy price lowered by 2-3 yen per kilogram for December shipment when aluminium scrap market price was weak. In the second week of January, primary aluminium price at London Metal Exchange strongly surged and Japanese aluminium scrap market prices hit bottom for major alloy makers’ January procurement. The alloy users of automotive component makers request additional 2-3 yen price down for January shipment. They emphasize cheaper alloy import prevails at around 190 yen per kg. The secondary aluminium alloy shipment is likely to maintain steady for automotive industry. Japanese automakers show output increase plans for January-March. An official of Japanese major secondary aluminium alloy maker told the company’s alloy production will increase by 10% for January-March compared with October-December.Japan Steel Scrap Composite Prices (Sangyo Press)
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