Japan Secondary Alloyed Al Makers to Offer 10 yen/kg Hike

Japanese major secondary alloyed aluminium makers try to realize major price hike for AD12.1 alloy for January shipment at the after shipment negotiation with the buyers. Many of the alloy makers decided to offer 10 yen per kilogram of hike when offshore market price increases both for primary aluminium and secondary alloy ingot and domestic raw material market is expected to increase. The alloy makers try to improve the profitability through the hike when they expect the domestic demand keeps firm in January-March.

The alloy makers failed to realize the price hike for December shipment. They sought 5-10 yen per kg of price hike but the negotiation was concluded to keep the price as November shipment while some cheap items increased by 3-4 yen and other items decreased by 1-2 yen to compete with import ingot.

The alloy makers try to offer wide hike at the negotiation in late January when they cannot make money at current 210-215 yen per kg for AD12.1 ingot. They try to improve the profitability even when material cost of melted aluminium increases from current around 180 yen per kg.

The indicator of primary aluminium market price reached US$ 2,500 per tonne at London Metal Exchange. Secondary alloyed aluminium makers in South Korea and China increased the offer price. Imported alloy cost increases recently when telegraphic transfer selling rate decreased to around 84 yen per US dollar.

Japanese secondary alloyed aluminium demand is expected to keep the level. Some alloy buyers are reluctant to import high priced Chinese alloy recently, which could increase order to domestic alloy makers. A die-casting maker said the demand will keep firm when automobile and automotive parts export keeps strong despite of slower domestic demand.