Secondary alloyed aluminium price increases for AD12.1 grade around Tokyo. Japanese major alloy makers including Daiki Aluminium Industry, Nikkei MC Aluminium and Summit Showa Aluminum are getting 15-20 yen per kilogram of price hike for February shipment in ongoing negotiation with the buyers when the buyers cannot secure enough import materials.
Higher aluminium scrap price and higher import metal price supports the higher alloy price along with recovering domestic demand. With the higher price, small lot buyers’ purchase price including freight will increase to 230 yen per kg for AD12.1 grade around Tokyo. Domestic aluminium scrap market price increased while the price is peaking since mid-February. Japanese import price of Russian AK5M2 grade metal keeps as high as CIF Japan US$ 2,050-2,060 per tonne. The alloy makers try to improve the profitability through the hike when they couldn’t pass the higher cost price on the selling price. Higher import alloy price also supports the alloy makers’ price hike. Chinese ingot offer price is as high as US$ 2,290 per tonne. A trading firm source said Chinese offer is almost soled out for March-April shipment and the new offer is mainly for May shipment. Under the import availability, Japanese buyers shift to domestic sources.Japan Steel Scrap Composite Prices (Sangyo Press)
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