Japan Secondary Al Alloy Makers Fail to Get Higher Price for October

Japanese secondary alloyed aluminium makers apparently agreed with the users to keep the alloy selling price for October shipment as September level at the after shipment negotiation. Some users accepted marginal price hike but the makers reduced the price for some high priced items. The price is around 215 yen per kilogram for indicative item of AD12.1 grade alloy including freight at 120 day note transaction.

The alloy makers sought more than 5 yen per kg of price hike for October shipment to cover higher cost for scrap and metallic silicon. However, the users resisted the hike when import ingot price is lower than the domestic price and the demand decreases under production cut by automakers.

The settlement was mixed. Some of the users accepted 5 yen per kg of hike while some users won marginal price down. The price range is around 215 yen for AD12.1.

The alloy makers are decided to seek higher price at the coming negotiation for November shipment when the cost keeps high for scrap and silicon and automobile output keeps high level. However, the negotiation is expected to be severe when the users also try to reduce the material cost.