Showa Denko Raises Alumina Selling Price by 10% in June

Showa Denko raised its selling price of alumina and aluminium hydroxide by more than 10% for shipment on and after June 1. The firm revised the price for the first time since February 2006. The firm is under the price negotiation with some users who haven’t accepted the hike fully yet.International bauxite supply is tightening, which is the main material for alumina, due to sharp expansion of primary aluminium output in China. Showa Denko is suffered from higher purchasing costs for bauxite while the firm procures bauxite mainly from India and Indonesia. Showa Denko produces alumina of about 200,000 tonnes per year at Yokohama plant which is currently in full operation.Nippon Light Metal, Japanese another alumina maker, announced the hike for alumina and the related products by average 10% effective for shipment on July 1. Nippon Light Metal decided the hike due to worse productivity with lower grade bauxite as well as higher bauxite price.On the other hand, Showa Denko recently started a feasibility study with Marubeni Corporation and local enterprises for an integrated chemical grade alumina plant from the mining of bauxite ore in Indonesia. Showa Denko plans to terminate the disposal of bauxite residue in the sea by 2015 and to construct an integrated plant with output capacity of 300,000 tonnes per year.