Secondary Al Alloy Import Price to Decline in Japan

Overseas secondary aluminium alloy market price continues declining. World’s largest maker, Sigma Group’s offer price marked the yearly low at CIF US$ 2,220 per tonne to Japan. Chinese makers’ offer price decreased by around US$ 100 to CIF US$ 2,000-2,050 in a week. Japanese trade firm sources expect they could purchase at less than US$ 2,000 depending on negotiation.

The Chinese makers reduced the higher offer price by US$ 20-30 per tonne almost every day in this week. Japanese trade firms said the Japanese secondary aluminium alloy users increase the willingness to purchase while the users stopped purchasing. However, the Chinese makers’ offer would continue declining.

The Chinese makers posted the inventory evaluation loss due to the plunge in alloy selling price in recent 2 weeks. Japanese traders are concerned the Chinese makers reduce the offer price more to increase the sales. When the users in Japan book the order now, the aluminium alloy will arrive as early as in first half of August. The lower priced import could impact on the domestic market.

The offer price of main material of aluminium alloy, AK5M2 decreased to US$ 1,850-1,880 per tonne from Russia to Japan. The price is much lower than the Japanese market price.