Strong Secondary Al Alloy Market in China, Korea and Taiwan

Secondary aluminium alloy market price is strengthening in Asian countries such as South Korea, China and Taiwan with demand recovery and tight aluminium scrap supply. Some sources indicate secondary aluminium alloy has already been sold out for August-September shipment in South Korea and Taiwan.

Japanese trader said domestic demand for secondary aluminium alloy is strongly recovering in South Korea thanks to Hyundai Motor’s production increase. Secondary aluminium alloy price for Hyundai Motor is said to be set at $ 1,750-1,760 per tonne for July-September supply, up by about $ 50 from April-June.

Another source said Korean secondary aluminium makers are decreasing export volume to one third level compared with a year earlier to meet strong domestic demand. South Korean offer price for Japan is currently CIF $ 1,650 per tonne, up by $ 50 in the latest month. Export contracts are almost full for shipment until September.

Another positive factor for the market price is that aluminium scrap generation maintains globally low. Shanghai Sigma Metals, Chinese largest secondary aluminium alloy maker, currently raised its export price for Japan to CIF $ 1,710 per tonne, up by $ 40 in late 2 weeks under the situation.

Japanese concerned source pointed out Japanese alloy consumers, such as die casting makers, are actively purchasing secondary aluminium alloy from middle- and small-class makers in Asia for consumption in and after autumn with an expectation the market price surges more. Taiwanese alloy makers are offering as high as $ 1,650-1,700 per tonne.