Osaka Secondary Al Alloy Makers Hikes Price by 10 Yen/kg for June Shipment

Secondary aluminium alloy makers and the alloy users, such as die casting makers, almost agreed in the alloy price hike for June shipment by 7-12 yen per kilogram, averagely by 10 yen from the previous month around Osaka. Secondary aluminium alloy makers’ selling price seems to reach 175-180 yen per kg for AD12.1 grade of small-lot shipment on 120-day draft. The highest price is around 180-185 yen per kg.

Alloy makers had requested the price hike by about 20 yen per kg for June shipment. Alloy makers’ operation rate is currently recovering to 60-70% level along automakers’ output recovery. Meanwhile, alloy makers are suffered from worse profitability due to the demand and price plunge since last autumn, low operation rate and worker downsizing cost.

At the same time, aluminium scrap market price has surged up since mid February. The price temporarily weakened in late May but rebounded by 10 yen per kg in June. Now aluminium melt price exceeds 140 yen per kg despite of using any type of scrap.

Alloy makers aim to offer additional price hike by 15-20 yen per kg for July shipment against the users. They wish to make AD12 grade alloy price reach 190-200 yen per kg. Alloy makers have tried to put their high production costs on the alloy selling price by raising the productive charge from current 40-45 yen per kg to 60-70 yen.