Secondary Alloyed Al Makers Get 3 yen/kg Hike for February

Major secondary alloyed aluminium makers around Tokyo are finishing after shipment price negotiation with automotive parts makers to increase the price by 3 yen per kilogram for February shipment, which is the first increase since April shipment in 2011. The price increased under higher offshore price of primary aluminium ingot and alloyed ingot and lower yen rate. The alloy makers try to increase the price again for March shipment to secure their margin.

The alloy makers offered 3-5 yen per kg of hike for February shipment when aluminium scrap price increased by 7-8 yen per kg for high grade scrap and by 2-3 yen for low grade scrap in first half of February. The buyers resisted the wide hike to accept certain hike.

The alloy makers try to increase the selling price for March shipment. A major maker source said the firm seeks 10 yen per kg of hike for March shipment to cover cumulative higher raw materials cost.

Primary aluminium ingot future price reached US$ 2,300 per tonne at London Metal Exchange. Chinese offer price increased to CIF US$ 2,420 for AD12.1 grade to Japan from Shanghai Sigma Metals. Yen exchange rate decreased to 82 yen per US dollar at telegraphic transfer selling rate.