Secondary Al Alloy Price Rises by 5-7 Yen/kg for April Shipment

Secondary aluminium alloy makers and alloy consumers, mainly die casting makers, mostly concluded price negotiations for April shipment in Japan. In Osaka, alloy makers’ selling price surged to around 165 yen per kilogram for AD12.1 grade with small-lot shipment on 120-day draft. The price averagely increased by 5-7 yen per kg from the previous month to reflect upsurge of imported alloy ingot price and aluminium scrap price.

Alloy maker sources said they succeeded to raise the alloy selling price by 5-10 yen per kg for April shipment from the previous month. Especially, in Nagoya area, the price improved by 10-15 yen per kg from the bottom in March.

Imported alloy price is strongly rising, which has exceeded 170 yen per kg. Aluminium scrap market price is also jumping to above 30 yen per kg in a short term. Additionally secondary aluminium consumers turned to increase ingot orders when inventory adjustment progressed at automobile and auto parts makers by the end of March.

Alloy makers are rejecting spot order increase and lower price offer than exported ingot because alloy makers have continued wide-range output reduction since autumn 2008. They will appeal strong selling stances for May shipment and aim the price hike by 20 yen per kg at least.