Secondary Al Import Price Edges Upward in Japan

Japanese secondary aluminium alloy ingot importing price is increasingt. Sigma Group of China, the world largest secondary aluminium alloy maker, offers CIF US$ 2,240 per tonne against Japanese importers. Smaller ingot makers are offering US$ 2,200-2,150.

Primary aluminium 3-month future price stays at US$ 2,200-2,300 per tonne at London Metal Exchange. Aluminium alloy market maintains backwardation. Several traders point out some of Chinese alloy makers are selling ingot to LME designated warehouse in Singapore.

Chinese large-class ingot makers are offering September shipment while middle- and small-class makers offer October shipment. The delay in delivery continues. Japanese importers are inactive to conclude new contracts under the situation. The main reason is that secondary aluminium alloy demand may slow down in or after October when Japanese government’s subsidy for eco car purchase program ends.

Offer price is also increasing for Russian base metal AK5M2 to US$ 2,100 per tonne.