Japanese Secondary Al Alloy Makers Aim Ingot Price at 250 Yen/kg

Japanese major alloy makers including Daiki Aluminium Industry, Nikkei MC Aluminium and Summit Showa Aluminum aim to raise the selling price of AD12.1 grade secondary aluminium alloy ingot to above 240 yen per kilogram for April shipment and above 250 yen per kg for May shipment. The alloy makers are suffered from loss due to continuous upsurge of aluminium scrap price.

The alloy makers’ aluminium scrap purchasing price averagely increased by 10 yen per kg on and after April 16th. Price negotiations between the alloy makers and die casting makers for April shipment will be almost closed next week. The alloy makers offer ingot price hike by 10-15 yen.

However, one of the alloy makers said they cannot gain profit at the selling price below 250 yen when aluminium melt price is reaching 200 yen and other costs are also increasing for substantial materials and fuels. The alloy makers try to raise the ingot selling price step by step for April-May.

Domestic demand of secondary aluminium alloy keeps steady. The alloy makers are in full productions with 75% capacity compared with the recent peak level. Meanwhile, offshore alloy price is strongly rising. Sigma Group’s current offer price is CIF US$ 2,440 per tonne against Japanese customers. Overseas market price is edging upward.