Japan Secondary Al Alloy Makers to Offer 5-10 yen/kg Hike for March

Japanese major secondary alloyed aluminium makers including Daiki Aluminium Industry, Nikkei MC Aluminium, Summit Showa Aluminum and Asahi Seiren target to increase the selling price by 5-10 yen per kilogram at after shipment negotiation for March shipment. They try to cover higher cost for scrap and energy. They expect the domestic price increase when the import price increases under lower yen rate.

The price increased for the first time since April 2011 for February shipment. However, the increase was only averaged 3 yen per kg while the makers sought 5 yen hike. The aluminium scrap price increased by 5-7 yen in second half of February. The scrap increased by 5-7 yen in first half of March.

A major maker source said the price should increase by more than 10 yen per kg for March to cover higher cost. However, the buyers resist the wide hike. The alloy makers try to improve the selling price step by step for March and April shipment.

Chinese offer is CIF US$ 2,320-2,410 per tonne for AD12.1 alloy for Japan. Some of the import price exceeded domestic price. A trading firm sees the buyers could shift from high priced import to domestic materials. The move could support price hike attempt by the domestic makers.