Sumitomo Light Metal Industries started study to introduce new surcharge mechanism in and after October to cover higher cost for subsidiary materials and energy as the firm usually reflects price change of aluminium ingot for the rolled products quarterly. The firm also seeks additional charge to cover materials loss when the loss cost surges under higher price of ingot. Japanese light metal rerollers are suffered from higher cost for aluminium ingot, magnesium and other subsidiary materials along with higher cost for packaging materials under record oil price. The makers try to cover higher cost through price hike while they try to reduce the production cost. Sumitomo Light Metal already announced 10-20% of higher rolling charge in the year and most of the buyers accepted the higher charge. However, the firm is suffered from additional cost when the cost keeps increasing. The firm is still in study for the surcharge mechanism for subsidiary materials and energy. The firm seeks higher charge for 3-5% of casting loss for the metal.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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