Secondary Al Alloy Price Surges to 185yen/kg, Osaka

Secondary aluminium alloy makers and alloy consumers, mainly die casting makers, almost agreed in price hike by average 8 yen per kilogram (5-10 yen per kg) for July shipment around Osaka. Alloy makers’ selling price seems to have reached 183-185 yen per kg for AD12.1 grade ingot of small-lot shipment on 120-day draft.

Alloy makers requested price hike by more than 15 yen per kg for July shipment. Demand for secondary aluminium alloy is recovering while material supply is shortening from both overseas and domestic market. In addition, primary aluminium price is sharply surging. As a result, aluminium scrap price rose by more than 10 yen per kg within a month. Alloy makers’ aluminium melt price exceeded 150 yen per kg.

On the other hand, alloy consumers showed strong disapprovals against the hike. Alloy makers are rejecting spot sales at low prices. Offshore alloy makers’ offer price is also surging to reflect high primary aluminium and aluminium scrap price. Shanghai Sigma Megtals, Chinese largest secondary aluminium maker, offered near CIF $ 1,900 per tonne against Japanese importers at the end of July though the price was around CIF $ 1,650 at the beginning of July.

Consequently alloy consumers partially approved the price hike for July shipment. Secondary aluminium alloy makers around Osaka would aim 200 yen per kg for August shipment.