Japan Primary Aluminium Price Rises by 30 yen/kg for April-June

Japanese primary aluminium ingot price increased by 30 yen per kilogram for April-June shipment, which is the first increase in 2 quarters. The indicator price for rolled aluminium products is increasing under higher international market. Japanese demand also recovers from the bottom.

Japanese primary aluminium price reached 400 yen per kg level in October-December 2008. However, the price decreased to 100 yen in January-March and 90 yen in April-June 2009 when aluminium price decreased to less than US$ 1,200 per tonne at London Metal Exchange in first half of last year. The domestic price rebounded in July-September 2009 and increased by 40 yen per kg in October-December.

LME aluminium price reached as high as US$ 2,300 per tonne earlier 2010, which was around US$ 1,000 higher than a year earlier level. With the higher international market, the domestic price increases. Foreign exchange rate of yen is stable at around 90 yen per US dollar recently.

Japanese aluminium demand recovers despite of the slow pace. The demand keeps increasing from the bottom for automobile and shows limited recovery for distributors while the construction demand is still severe slump.