Tokyo Secondary Al Alloy Makers Gain 6-8 Yen/kg Hike for March Shipment

Secondary aluminium alloy makers and die casting makers around Tokyo almost agreed in price hike of AD12.1 grade secondary aluminium alloy ingot by 6-8 yen per kilogram for March shipment. Alloy makers aim to improve the price level continuously for April shipment in order to cover productive cost upsurge.

Major alloy makers around Tokyo including Daiki Aluminium Industry, Nikkei MC Aluminium and Summit Showa Aluminum offered price hike by 15 yen per kg for die casting materials and by 20 yen per kg for casting materials effective for March shipment. In February, aluminium scrap price kept upsurge while substantial material costs also upped such for copper and metallic silicon. Fuel cost increased, too. Secondary aluminium alloy makers tried to reflect higher productive cost on the selling price.

Die casting makers were negative to accept wide-range hike immediately. Thus most die casting makers and alloy makers agreed in gradual price hike. For March shipment, the hike range exceeded 10 yen per kg for AD12.1 grade ingot and reached 15 yen per kg for casting materials at maximum.

Alloy makers aim to sustain step-by-step price hike for April shipment. However, alloy demand is likely to decline sharply in a short term when Japanese car makers are under temporary plant suspensions after Japan Earthquake. Alloy maker sources show concerns on negative impact of weak demand on the next price negotiations for April shipment.