Japan Buyers Expand AD12.1 Alloy Import

Japanese diecasting makers and automotive parts makers increase offshore future purchase of secondary alloyed aluminium, AD12.1 grade when the import is cheaper than increasing domestic alloy under higher yen rate. A trading firm source said many users already secured the metal for February shipment. With higher demand, the supply is tight for December shipment.

Offshore makers including Shanghai Sigma Metals offer CIF US$ 1,850-1,880 per tonne to Japan for AD12.1 alloy. Smaller sized offshore makers offer US$ 1,850 or less. The offers are yearly high while the price is 15-20 yen per kilogram lower than more than 170 yen of domestic metal.

Japanese buyers expect automobile production would keep firm from October-December to January-March and the buyers’ metal purchase could be stable through February, according to Japanese trading firm. However, the trading firm source said the buyers are still reluctant to purchase metal in and after March shipment due to uncertainty for the demand.

South Korean makers reduce AD12.1 metal offer to Japanese buyers. A trader with transaction with South Korean makers said the makers are busy to meet domestic demand when Hyundai Motor purchases the metal at US$ 2,000-2,100 per tonne for October-December to meet the high level automobile production.

Japanese import decreased the alloy import from China since February when the buyers reduced the import under the slump. The import was 2,018 tonnes in April, which was around a sixteenth of the peak in 2008. The buyers restarted the purchase since May shipment and increase the purchase gradually.