JPN Secondary Al Makers to Keep Silicon Metal Purchase Volume for Apr-Jun

Japanese major secondary aluminium alloy makers such as Daiki Aluminium Industry and Summit Showa Aluminum will start the price negotiation of silicon metal #553 for April-June procurement within this week. Silicon metal #553 is an additive metal for secondary aluminium alloy. Chinese producers’ current offer price is around CIF US$ 2,100 per tonne, which is slightly lower than in late January but still stays at the high level. Japanese alloy makers are expected to purchase silicon metal #553 almost as much as in January-March due to their steady alloy productions.

Silicon metal #553 market price jumped up to US$ 2,200-2,250 per tonne in December 2009 when the producers widely decreased the output volume due to electric power shortage in China. Japanese users had to approve the high-price for January-March.

Silicon metal refineries in Guizhou Province of China, where many silicon metal refineries are located, continue the wide-range output reductions due to power shortage caused by the low-water season. Meanwhile, a concerned source says some refineries are increasing the output those who utilize coal as fuel and the supply tightness is slightly eased. As a result, the market price has lowered by about US$ 100 from the high level at the beginning of this year.