Japan Secondary Alloyed Al Price Rises by 20-25 Yen/kg

Japanese secondary alloyed aluminium makers are apparently concluding after transaction price negotiation with the users for January shipment to increase by 20-25 yen per kilogram under higher scrap market. The price increases to more than 200 yen and reaches 215-220 yen for AD12.1 grade in small lot transaction. The price could increase more when Japanese alloy makers try to realize more than 230 yen for February shipment under tight supply.

Aluminium scrap market increases through January. The international price surges under worldwide tight supply, higher primary aluminium market and higher demand especially in China and emerging countries. Russian offer reaches US$ 2,200 per tonne for base metal AK5M2 and US$ 1,850 for aluminium casting scrap.

Japanese aluminium scrap and secondary ingot price increased by 20-25 yen per kilogram in the month. Melting aluminium metal price reaches 185-190 yen when the cost increases for subsidiary materials including silicon and copper, according to industry sources.

Chinese major alloy makers export price increased to US$ 2,300-2,400 per tonne for AD12.1 grade and the minor makers export price increases to US$ 2,200-2,300. The price is higher than US$ 2,189.50 per tonne for primary aluminium price at London Metal Exchange on Tuesday. Japanese buyers shift to domestic ingot while domestic alloy makers cannot meet all of the orders due to limited supply of scrap.