Japanese Secondary Al Alloy Makers and Users Agree in 7 Yen/kg Hike

Japanese secondary aluminium alloy makers and domestic ingot users such as die casting makers, agreed in the price hike of the ingot by 5-10 yen per kilogram (averagely 7 yen) for March shipment from February, according to the several ingot makers. The selling price of AD12.1 grade ingot increased to around 225-230 yen per kg for small-lot shipment to the final users on 120-day drafts.

Secondary aluminium alloy makers had offered the price hike by 10-15 yen for March shipment. Aluminium scrap cost surged by more than 10 yen per kg during March due to low scrap generation in Japan and the offshore market price upsurge.

The ingot users had approved the price hike by more than 30 yen per kg for January-February. The ingot users seem to have disapproved the wide-range hike for March. However, primary aluminium market price jumped up in late March and Japanese yen exchange rate rapidly weakened against US dollar.

Russia’s offer price for AK5M2 rose to around US$ 2,250 per tonne, equal to 211 yen per kg calculated at 94 yen per US dollar. In addition, Hyundai Motor of South Korea is said to have agreed with secondary aluminium alloy makers to set the purchasing price of AD12.1 grade ingot at around US$ 2,450 per tonne (approximately 230 yen per kg calculated at 94 yen per US dollar).

With these factors, Japanese buyers had to approve the ingot price hike for March.