Japan Secondary Alloyed Aluminium Makers Got Marginal Price Hike for Oct

Japanese secondary alloyed aluminium makers concluded the price negotiation with the users including die-casting makers for October shipment, which is usually decided after the shipment. The price increased for the first time in 6 months. The price apparently increased by 2-3 yen per kilogram from September to 190-195 yen for AD12.1 grade at delivered price for 120 days note transaction while some transaction was same level as September.

The alloy makers sought 5 yen per kg hike and 200 yen of selling price for October shipment to improve the profitability by covering higher raw materials cost. However, the price hike was narrower when primary aluminium ingot price turned into decrease in October while the alloy selling price decreased to less than 190 yen for contract users. Lower import offer also impacted on the domestic price.

The alloy makers try to seek higher price for November shipment when their profitability gets worse due to higher raw materials cost and higher depreciation.