Japan Secondary Alloyed Aluminium Price Drops by 1-2 yen/kg

Secondary alloyed aluminium makers concluded price negotiation with users including diecasting makers for products already shipped in July. According to alloyed aluminium makers’ sources, the price decreased by averaged 1-2 yen per kilogram from June while some were 3 yen down and some were flat. The price dropped for the first time since November 2005 despite of the small down after primary ingot price and scrap price decreased after mid-May. The makers sought 5 yen per kg hike for July shipment negotiation. However, the users resisted the hike when primary aluminium ingot price was low in July after the price decreased temporally to less than US$ 2,400 per tonne at London Metal Exchange in June from the recent peak of US$ 3,275 on May 11. The primary ingot price was low at 300-315 yen per kg without freight in Japan after the major drop to less than 320 yen in June end from recent peak of more than 370 yen in mid-May. Japanese alloyed aluminium makers reduced the scrap purchase price by 20 yen per kg for high grade scrap in July under the price cut activity since late May associated with primary ingot market. Japanese import price also decreased for alloyed aluminium ingot and scrap since autumn 2005. The users already accepted wide hikes by alloyed aluminium makers. The users succeeded to get 1-2 yen per kg price down by the makers and some users get 3 yen down. The price is estimated to be around 305 yen per kg including freight at 120 days finance transaction for AD12.1 grade.