Japan Secondary Al Alloy Price Hits First Drop in 14 Months

Japanese secondary alloyed aluminium price turned into decrease for the first time in 14 months after the price has increased under recovering automobile demand and tight raw materials supply. The price decreased due to lower international market. However, the suppliers try to keep the selling price when the domestic demand is expected to keep firm and the import price keeps high level at around 220 yen per kilogram for Russian ingot.

Japanese secondary aluminium alloy makers reached agreement with the users including die-casting makers to reduce the price by 4-8 yen per kg for June from May at the after shipment negotiation. Some makers cut the price by 10 yen. The price apparently decreases to 225-230 yen for AD12.1 for small lot transactions including freight.

The alloy makers resisted the price down pressure by the users when the melting metal cost keeps more than 200 yen per kg even under lower international market. However, the makers accepted the lower price when primary ingot price decreased by near 60 yen in May and June, domestic aluminium scrap price decreased by 30 yen, import offer decreased from CIF US$ 2,200 per tonne to US$ 1,800 for Russian ingot and from US$ 2,450 to US$ 2,100 for Chinese AD12.1 while major automaker settled the import ingot purchase price at less than 220 yen per kg for July-September.