Secondary aluminium alloy makers around Osaka agreed with the users in price hike by 5-8 yen per kilogram for AD12.1 grade alloy for small-lot shipment in March. Alloy makers raised the selling price for 2 months in a row to reflect production cost upsurge. Meanwhile, alloy demand is sharply decreasing after Japan Earthquake.
Aluminium scrap market price, the indicator for AD12.1 grade alloy price, surged by 12 yen per kg for high grade scrap, by 10 yen for low grade scrap and by 11 yen for used beverage can during one and a half months since early February. Fuel cost for melting furnace operation also increased. Alloy makers put high production cost on the selling price to cover narrow-range price hike for February shipment. At present, domestic automakers are mostly suspending their plants due to component supply concerns after Japan Earthquake. One secondary aluminium alloy maker around Osaka said many alloy deliveries were canceled after March 20.Japan Steel Scrap Composite Prices (Sangyo Press)
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