Secondary Al Alloy Makers Accept 4-6 yen/kg Price Down for June

Secondary alloyed aluminium makers around Tokyo concluded price negotiation to decrease the selling price by 4-6 yen per kilogram for June shipment at the after shipment negotiation. The makers had to reduce the price due to lower primary aluminium and scrap price. The alloy price could decrease more in July due to lower tender price by major users despite of the higher demand for automobile.

The alloy makers tired to keep the price at the negotiation. However, the users sought 5-10 yen per kg of down. The alloy makers finally accepted the certain price cut when primary aluminium price was lower at less than US$ 2,500 per tonne at London Metal Exchange and aluminium scrap price decreased by more than 10 yen per kg after the major earthquake along with higher yen rate. A trading firm source said many of Chinese AD12.1 alloy price is less than 200 yen per kg for arrival in August and September.

The alloy makers plan more than 90% of operation in July. However, their profitability is severe due to higher cost for additives and energy. A major maker source said the melted alloy price has no room to reduce more. An industry source said aluminium scrap price could increase gradually when the supply gets tight recently.

The alloy makers started scrap purchase price negotiation with the dealers for first half of July. The makers expect flat scrap price while the scrap dealers seek 3-5 yen per kg of price hike for lower grade scrap under higher demand.