Japan Secondary Al Alloy Makers Offer Price Hike for Nov Shipment

Japanese major secondary aluminium alloy makers including Daiki Aluminium Industry and Nikkei MC Aluminium aims to raise their ingot selling prices by 5-10 yen per kilogram for November shipment. Daiki Aluminium tries to increase the price by 10 yen for both casting materials and die casting material, AD12.1, to reflect higher production costs. Nikkei MC Aluminium offers price hike by 5 yen for AD12.1.

Alloy makers’ ingot selling price was almost unchanged for October shipment since low-priced imports increased and domestic demand for secondary aluminium alloy slowed down. Alloy makers aim to offer price hike for November shipment against alloy users such as die casting makers and automotive component makers.

High grade aluminium scrap, the main material for casting material, surged by 10-15 yen per kg during the term from late September to October. Price upsurge was slight for low grade aluminium scrap, the main material for AD12.1, but most alloy makers recognize the material cost is still high against their ingot selling price.

In addition, alloy makers now hold high-price substantial materials such as metallic silicon and copper. Molten aluminium price is presently said at 175-180 yen. It is difficult for alloy makers to secure moderate margin with AD12.1 selling price at 210-215 yen.