Secondary Aluminium Base Metal Price Slightly Declines in Late February, Tokyo

Secondary aluminium alloy makers around Tokyo almost concluded price negotiations for base metal (ADC10 grade) of the shipment for second half February at around 188 yen per kilogram without freight. The price slightly decreased by 2 yen from the first half of February to reflect the price down of primary aluminium ingot. The price is likely to rebound in March with several factors such as steady demand for secondary aluminium materials in Japan.

Domestic base metal price turned down for the first time in 4 months. However, the price is expected to rebound for the shipment in the first half of March. A base metal maker around Tokyo said material supply maintains very tight due to low generation of engine scrap in the market. Material costs stay high at Japanese base metal makers.

Russian base metal makers are offering CIF US$ 2,050-2,060 per tonne for AK5M2 against Japanese consumers. AK5M2 supply volume keeps very low because of Russian base metal makers’ output reductions. Japanese secondary aluminium alloy makers are recently increasing utilization of domestic base metal substitute for AK5M2.

Some of local base metal makers are showing strong sales stances. One maker source said base metal has already been sold out for February shipment and they wouldn’t ship the products unless the price rises in March.