Secondary Al Alloy Makers in Tokyo to Leave Sales Price Unchanged for Aug

Major secondary aluminum alloy makers around Tokyo try to slightly increase or leave selling price unchanged for August shipment. The price negotiation begins in next week. Japan’s largest maker, Daiki Aluminium Industry tries to increase sales price while the firm’s selling price slightly decreased or kept unchanged in July shipment. Other major makers try to leave the selling price unchanged for August shipment. Price negotiation is expected to become tangled due to offshore primary aluminum market price decrease, increase in secondary aluminium import ingot from China and expectation for aluminum scrap price decrease. The makers’ selling secondary aluminium ingot selling price decreased by average 2-3 yen per kilogram in July shipment when Chinese low priced AD12.1 import increased and aluminium scrap price decreased at tender by major secondary aluminum alloy users for August-September.

Secondary aluminium ingot users, automobile parts makers request price cut secondary aluminum alloy makers for August shipment when Chinese low priced ingot increases in September. One trading firm source said import volume of Chinese AD 12.1 increases by about 20% to more than 35,000 tonnes for September from August. The import is expected to be same level in October.

Import price of Chinese AD 12.1 is around 205 yen per kilogram in September due to high yen rate. The import price is lower than domestic ingot price to small users. One domestic alloy maker source said imported ingot is used by mainly major users while middle and small users mainly use domestic ingot. The source sees the imported ingot have only limited effect on the price negotiation for August shipment. However, imported ingot must impact domestic market price.

Aluminum scrap market price is expected to decrease by 5-10 yen per kilogram for last half of August due to offshore primary aluminium market price decrease. Automobile parts makers would request price cut to secondary aluminum alloy makers.

Major secondary aluminum alloy makers are expected to double the production for August from a year earlier and to continue high operation in September. When Japanese major automobile makers increase the production. The demand for secondary aluminiu alloy is expected to increase in autumn.