Secondary Al Alloy Price Continues Rising in Tokyo

Secondary aluminium alloy makers and automotive component makers around Tokyo almost agreed in 3-5 yen per kilogram alloy price increase for March after the shipment. Alloy price increased for two months in a row. However, local alloy makers offer additional price hike for April shipment to secure enough profit.

Major secondary aluminium alloy makers around Tokyo offered 5-10 yen per kg price hike for March shipment when aluminium scrap market price had surged by 10-15 yen per kg from late February to early March. Fuel cost had also increased. Local alloy users disapproved the full range hike when traders have stock of imported alloy, which is cheaper than domestic products.

The alloy makers would offer 5-7 yen per kg hike for April shipment. Aluminium scrap market price is currently leveling off but fuel and electricity costs are surging. One bullish factor is that Japanese users reduece purchase volume of Chinese AD12.1 grade alloy due to higher price at CIF US$ 2,340-2,410 per tonne.