Daiki Aluminium to Seek 10 yen/kg Alloy Hike

Osaka based aluminium alloy maker, Daiki Aluminium Industry tries to increase the selling price by more than 10 yen per kilogram for August shipment to cover higher cost for raw materials and energy. The firm seeks higher price as the first priority though the firm usually values sales volume. The largest maker’s move could be followed by competitors. The makers are making loss under higher cost for silicon and subsidiary materials and heavy oil while the selling price keeps low. The makers settled the negotiation with automakers to reduce the price by more than 20 yen per kg for July-September. The alloy makers secured the volume at lower price when they expected lower aluminium source. However, aluminium scrap price increased since July. Daiki Aluminium announced on July 24 the firm would post 420 million yen of consolidated recurring profit for first half year to September, which is 80.6% lower than same period of 2007. The firm decided the price hike to keep stable supply including normal maintenance and environmental program.