Japan Secondary Al Alloy Buyers Shift to Cheap Domestic Ingot

Japanese buyers are shifting to domestic secondary alloyed aluminium ingot due to the cheaper price than Chinese and Russian ingot. Some buyers try to secure domestic purchase while they are away from the international market.

Chinese offer is CIF US$ 1,920-1,930 per tonne to Japan for September shipment. Chinese smaller makers’ offer is also more than US$ 1,850, which is the highest level since late 2008. Russian offer is CIF US$ 1,730-1,740 per tonne to Japan for AK5M2 grade ingot for September shipment.

Japanese buyers are reluctant to purchase at such high price when they concern the offshore market could decrease in October-November when the ingot is delivered.

Japanese secondary alloyed aluminium price is around 185 yen per kilogram for small lot transaction with 120 days note payment for after transaction price settlement for July shipment.

Some traders increase the spot purchase with 100-200 tonnes of lots from domestic makers but the makers are reluctant to get the order due to the cheap bid at around 185 yen.