Japan Makers Raising Price of Alumium Rolled Products

Japanese makers and dealers are raising their selling prices of aluminium rolled products due to the soaring price of aluminium primary ingot. The aluminium spot and future price increased to over US$ 2,400 per tonne this year at London Metal Exchange (LME) and still maintain the strong tone, while it was at above US$ 1,600 in July 2005. Japanese makers and dealers, mainly major makers of aluminium rolled products, advance the price hike in order to cover the increasing material cost. Japanese major trading house forecasts the LME aluminium future price could reach US$ 2,600 at the highest in the first half of 2006. Both prices of aluminium ingot and rolled products have strong potential to increase.The price of aluminium rolled products is changed generally based on the 3-month average of the ingot price. The averaged ingot price for January-March increased by 30 yen to 280 yen per kilogram, which increased by more than 30 yen for the first time in 8 years and 9 months. The material cost will be added to the aluminium rolled products prices from January shipment relied on the rule.Showa Denko was the first to announce the price hike. The firm raised the selling price of aluminium rolled products by 50-80 yen, including plate, electrolytic foil and ordinary foil, and the price of extrusion by 30 yen. After that, Toyo Aluminium announced that it would raise the plain foil price by 60 yen for February shipment and that it plans next price hike for processed foils such as press through package (PTP). Nippon Light Metal and its subsidiary, Nikkeikin Aluminium Core Technology Company, raise the price by 30 yen for aluminium plate and by 30-80 yen for aluminium extrusion in and after January. Mitsubishi Aluminum will raise the aluminium foil price by 70 yen in March, mainly for food packaging foils. Japanese 3 major makers of aluminium rolled products, Furukawa-Sky Aluminum, Sumitomo Light Metal Industries and Kobe Steel, add 30 yen on their selling prices as material cost against users applying the 3-month surcharge system.