Japanese Secondary Al Makers Minimize Offshore Material Procurement

International market prices of secondary aluminium alloy materials are rapidly surging when aluminium scrap generation maintains stagnant globally, primary aluminium market price increases and the material demand keeps very strong in Asia, mainly in China. Japanese material users including secondary aluminium alloy makers are decreasing procurement of overseas materials.

US offer price is CIF US$ 1,940-1,980 per tonne for Tense and US$ 1,900-1,940 per tonne for Taint Tabor at present. Both prices jumped by US$ 45 from last week. Russian offer price for AK5M2 also surged by US$ 30-40 to US$ 2,310-2,320 per tonne from last week.

The backgrounds are low aluminium scrap generation caused by slow economy, aggressive material purchase by Chinese and South Korean secondary aluminium alloy makers, and recovering operations at North American secondary aluminium alloy makers. As a result, several Japanese traders point out offshore offers are decreasing for Japanese users.

The market price is likely to keep gradual uptrend for a while. Japanese secondary aluminium alloy makers and traders would minimize material procurement from overseas.