Secondary aluminium alloy makers around Tokyo almost concluded price negotiations for base metal (ADC10 grade) at around 187-192 yen per kilogram for delivery during 16th-31st April. The purchasing price downs by average 2-3 yen compared with the first half of April.
Secondary aluminium alloy makers are decreasing AD12.1 grade alloy production when car makers are largely lowering plant operations. Thus alloy makers are decreasing base metal procurement from domestic suppliers. One major base metal supplier around Tokyo is concerned the sales volume would decrease by about 40% in the second half of April compared with the normal level. Another source pointed out alloy makers may decrease AD12.1 output more in May. On the other hand, automotive engine scrap generation is largely increasing, one of main materials for base metal. One base metal maker said car scrap is transferred from North Japan gradually. However, scrap price hasn’t lowered. Base metal makers are suffered from high material cost.Japan Steel Scrap Composite Prices (Sangyo Press)
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