Japan Primary Al Price to Stay Flat for Apr-Jun

Japanese primary aluminium ingot price, the quarterly indicator for domestic aluminium rolled product prices, will stay unchanged at 220 yen per kilogram for April-June from January-March. The price decreased for two quarters in a row through January-March 2012 while the price stopped decreasing to reflect uptrend of offshore primary aluminium market price since early January.

Japanese primary aluminium ingot price is based on three-month fluctuation of offshore primary aluminium market price for December-February. Primary aluminium market price weakened since autumn of 2011 with negative sentiment along European financial crisis. The settlement at London Metal Exchange (LME) represented below US$ 2,000 per tonne for eight straight trading days from December 19.

Meanwhile, LME settlement jumped to US$ 2,138 on January 10 after the announcement by Alcoa on January 9 that the firm reduces its aluminium smelting capacity by 12% around the world. LME aluminium price kept strong tone in mid and late January, pulled by LME copper price upsurge.

The price leveled off in early and mid February while the price upturned in late February when crude oil market price surged to reflect political conflicts around Iran. Speculative money flowed into LME primary aluminium since aluminium smelters consume large quantity of electricity.