Nippon Light Metal Raises Rolled Aluminium Price by 30-80 yen/kg

Nippon Light Metal and the subsidiary, Nikkeikin Aluminium Core Technology said they increase rolled aluminium selling price by 30 yen per kilogram for aluminium sheet and by 30-80 yen for extrusion for January shipment. They try to pass the higher cost of aluminium ingot, of which their purchase price increases by 30 yen per kg for January-March. Japanese aluminium makers try to increase the selling price when Showa Denko already announced the price hike for sheet, electrolytic foil, commodity grade foil and extrusion Toyo Aluminum said the price hike of plane foil. The aluminium market price keeps increasing since late 2005 and reached US$ 2,200 per tonne at London Metal Exchange. The price reached US$ 2,300 for 3-month futures. Japanese aluminium ingot price could increase by 30 yen per kg in April-June based on the current market price despite of the lower yen rate against US dollar.Nippon Light Metal’s Nagoya plant faces several tens of million yen of cost up every month due to the higher cost of ingot and crude oil. The firm tries to pass the higher cost on the selling price at least for the higher ingot price though the copper and titanium prices as alloy materials for billet also increase. The firm increases the extrusion price by 30 yen per kg for tube and bar, which has price mechanism to reflect change of ingot price every 3 months, and by 30-80 yen for processing products depending on negotiation with users. Nippon Light Metal and the subsidiary left the rolling charge unchanged for January-March to focus on the passing higher cost of ingot. They try to reduce cost by shifting the energy from heavy oil to gas.