Japanese secondary alloyed aluminium makers try to increase the contract price for August shipment at coming negotiation with the buyers. They apparently seek more than 20 yen per kilogram of hike through September shipment. The makers are making loss due to higher cost for energy and raw materials when they cannot pass the higher cost on the selling price. A maker source said the maker is now price first marketing while they tried to secure certain sales volume before. The aluminium makers failed to increase the selling price for July shipment though they sought more than 10 yen per kg of hike. The price is estimated to be 305 yen per kg with 120 days note payment for AD12.1 grade for small buyers. The makers’ cost is estimated to be 275-280 yen per kg for melting metal including production loss. A maker source said the makers need 40 yen of processing charge on the melting cost to make money but they get only 25-30 yen of charge now.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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