Secondary Al Alloy Makers and Users Agree in 5-8 Yen/kg Hike for February

Secondary aluminium alloy makers around Osaka raised their ingot selling prices by 5-8 yen per kilogram for February shipment. The averaged selling price increased to 233 yen per kg for AD12.1 grade alloy at small lot shipment to end users. The price hike reflected material cost upsurge.

Aluminium scrap market price surged by 15 yen per kg for high grade and by 9 yen for low grade during January-February. Scrap market price strengthened in and after early January when primary aluminium market price, the indicator, kept uptrend while scrap generation maintained low.

Additive metal prices also surged for metallic silicon and copper. Fuel costs increased, too. Secondary aluminium alloy makers offered price hike by 10 yen for February shipment to cover production cost upsurge.

Die-casting makers, main consumers of secondary aluminium alloy, showed strong disapproval against price hike due to shipment slowdown of die-casting to automakers as well as cost reduction activities at die casting makers. Finally alloy price was set 5-8 yen higher than January shipment.

One alloy maker suggested continuous price hike offer for March shipment when the latest price is insufficient to cover production cost upsurge.