Japan Makers Try to Raise Premium for Primary Al Alloy

Japanese aluminium alloy makers aim to raise premium charge for primary aluminium alloy ingot. They are offering price hike to customers including automotive parts makers in order to cover higher costs for heavy oil and additive metals. Primary aluminium alloy is made of primary aluminium ingot and additive metals such as copper, metallic silicon and nickel.The alloy makers have offered premium charge hike to the customers since the second half of 2007. Some customers approved the offer this year while some items’ profitability continues to become worse, for example, A351 alloy.A351 alloy is mainly consumed by piston makers, which contains relatively much nickel. An alloy maker source said they offered premium charge hike for A351 by around 70 yen per kilogram but the hike has been approved only by 40 yen/kg.