Japanese Secondary Al Alloy Makers Try 5-10 Yen/kg Hike

Japanese major secondary aluminium alloy makers try to realize price hike by 5-10 yen per kilogram in price negotiations with the alloy users for April shipment. The alloy makers aim to reflect material cost upsurge in February-March. Meanwhile, overseas primary aluminium market and domestic aluminium scrap price are presently weakening. The alloy users are unwilling to approve the price hike fully.

Daiki Aluminium Industry offered 7 yen price hike for April shipment. Nikkei MC Aluminium and Summit Showa Aluminum requested 5-10 yen hike while Asahi Seiren offered 5 yen. The previous price talks for March shipment were concluded in average 3-5 yen price up, lower than the alloy makers’ offers for 5-10 yen hike.

Aluminium scrap market prices totally surged by 10-15 yen during February-March. Fuel and electricity costs are also increasing. The alloy makers have failed to pass these cost up on the selling prices fully.

At present, however, overseas primary aluminium market price, an indicator, is weakening to below US$ 3,000 per tonne. Then aluminium scrap market price lowered by 5 yen for high grade scrap and by 2-3 yen for low grade scrap in the first half of April. Scrap prices might decline more toward late April. Secondary aluminium alloy users, mainly car makers, are offering less price hike along with the indicators.