Secondary aluminium alloy makers almost concluded after shipment price talk with the users to reduce the alloy price by 2-4 yen per kilogram around Tokyo for May. The price cut reflected lower domestic aluminium scrap market price and weak offshore primary aluminium market price as well as historically strong yen exchange rate. Secondary aluminium alloy price might continue to decrease for June shipment.Secondary aluminium alloy makers around Tokyo requested 2-3 yen per kg price hike for May shipment against local alloy users those who had approved the price hike by less than 10 yen per kg accumulatively this year. The alloy makers tried to leave the price unchanged for the users those who had approved 10 yen hike since January. The automotive parts makers and other users requested 3-5 yen per kg price cut for May shipment when domestic aluminium scrap market price and primary aluminium price at London Metal Exchange (LME) were weak. Aluminium scrap market prices decreased by average 10 yen since April. LME primary aluminium 3-month price is presently around US$ 2,000 per tonne, the yearly bottom level. Chinese secondary aluminium alloy makers are offering C&F US$ 2,230-2,280 per tonne against Japanese customers. The offer price is equivalent to 184-186 yen including margin and freight, cheaper than domestic alloys. Secondary aluminium alloy price is likely to continue decreasing in June. A price tender was held on June 1 for July-September shipment to a local major alloy consumer around Tokyo. One trader source indicates the successful bid price would be slightly lower than April-June shipment when primary aluminium market price is weak. In addition, import of Chinese secondary aluminium alloy is expected to increase at low price in and after July.
Japan Steel Scrap Composite Prices (Sangyo Press)09/24/2020
|26600YEN (-)||28600YEN (-)|
|249.88US$ (-0.73)||268.67US$ (-0.79)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)