|  | 26/07/2004 |
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Sumitomo Light Metal to Get Higher Rolling Margin
President Kazuhiko Masuda of Sumitomo Light Metal Industries said regarding negotiations to raise aluminium can processing charge by 10-15% that the firm is almost getting the hike and he expects to conclude the talk by the end of the month. With the higher rolling margin for contract users after price hike for distributors, the firm would get critical part of the series of hikes. The succeed is also likely to impact on current negotiations for higher rolling margin of can materials by Japanese light metal re-rollers.
Japanese major light metal re-rollers have sought higher margin to cover higher cost for surging raw materials and higher quality under tight supply. Distributors' market price increased by around 50 yen per kilogram for commodity grade materials since April. Re-rollers are getting higher margin gradually for contract users through continuing negotiations. However, they couldn't get hikes for largest users of can makers despite of long lasting negotiation after years of decreasing prices.
Mr. Masuda said can makers stated understanding the situation though they don't still accept the value, which the firm seeks. Materials' prices are surging for steel can and polyethylene terephthalate bottle under surging price for steel products and oil price. With those increasing prices for competitive materials, can makers are recognizing aluminium materials price could increase too.
Mr. Masuda emphasized the firm would insist higher margin enough to secure reinvestment fund at the negotiation rather than next one. The firm tries to secure enough profit to reinvest realizing the target under new mid-term business plan.
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 | Sumitomo Light Metal to Get Higher Rolling Margin
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