The cut and thrust continues in aluminum raw materials market For Japanese vs Korean Market

                                          IRUNIV 2013/07/16

 The aluminum raw materials market seems to give an implication of fall in midsummer. Above all, there is a strong possibility that aluminum UBC declined because the effect of intense heat and Korea’s buying was becoming weak to the sick from the summer heat.

Changes in Nspl price (NSP)


Market price change of aluminum UBC

 Nsp covers the fall in LME aluminum market price caused by the recent deflection of the depreciation of yen exchange rates, and keeps around 239 yen that is a standard in the beginning of June.
Aluminum UBC once increased to nearly 140 yen by the bid of the local government, but begins to decline here at the peak. It has not gone so down as to say "the higher the mountain, the greater the descent", but the common buying price of alloyed aluminum maker in the middle of July makes a successful bid for 125-130 yen/kg, and 125-127 yen level/kg by the successful bid of the local government as well.
Just Shinryo aluminum is obtainable for 130 yen,but the Shinryo is also considered to bring down some of the buying price in the latter half of July. UBC experts' source is expecting "Judging from the present successful bid price, UBC will fall to the 120 yen early level in the future ". By the way, the handling quantity of UBC in the same company increases rapidly in this intense heat, and it is said that the arrival and shipping of goods were increasing, for about 550 tons around April increased to 800 tons in June, and it will exceed this in July.

It is UBC for Novelis with a high price of 1450 dollar
 Also for Korean market, there exists a high price of 135 - 137 yen in FOB for a time, and the amount of export increased. First of all, it is said that there is no high price such thus far. A grieving principles is also heard from Korean dealers, "We cannot purchase in Japan because Korean side maker’s buying price is low". However, it is USD1450 - 1470/t for Novelis in Korean C&F. Elsewhere, it is around 1,400 dollars for deoxidation materials makers in the same C&F. If we only look at the price , it is quite a high price, but in a part there is an information saying "(Korean makers) overbuy and feeling of the surplus of stock increases".
 For Novelis, if we suppose it hits a bill for 100 yen, C&F145 yen/kg,and calculate the transportation cost by 7 - 8 yen/kg and the trading company's commission by 2 yen /lg, it will be seen to be the buying price of 135 yen. But, the shipper for Korean does not reach the high price until now (as of July 12).
In addition, summertime is the season causing much water pulling invariably. It is a well-known fact that Shinryo carries out 3% of water pulling in Japan. But after being tempted to a high price and shipping it to Korean side , it must also include the possibility that unit price falls down largely by water pulling.

May, 2012〜May, 2013	Changes in aluminium scrap exports for Korean

 For Korean, there is a buying of screw included sash in Hiho company, but this is Korean C&F and it is USD1520/t.
 So far, there are circumstances where the domestic aluminium raw materials market has been supported and the buying price of domestic alloy maker is expected to do a soft landing if Korean high price buying is relieved. However, after all as officially announced, a high price exists for Korean is what we cannot say 100% of the falling market price. That the circulation has been falling by "the slack summer season" is also one of the causes that are supporting scrap market price. The scrap import company is also telling about even in America, which is a large outbreak country of aluminum scrap, aluminum scrap does not fall down to a quite reasonable price range.
 However, because of that Daika star and each company of alloy maker alike are holding a high import lump (ADC12& Russia lump); that Toyoda Tsusho, Honda Trading, etc and hot aluminum maker are also holding a high base metal;that unexpectedly alloy demand for cars is not increasing (*the original unit consumption of aluminum scrap market falls because the main domestic production is of light vehicle and hybrid cars ) and so on, it is considered that the changes in aluminum scrap market are in an implication of fall.

The buying price of secondary aluminum alloy maker's scrap (Kanto District)
 ( yen / maker's bottom price based per kg)
  2S new cutting ....170-175
  printing plate....173-178
  63 grade sash....165-170
  52 grade alloy....158-163
  screw included sash....142-147
  aluminum bronze radiator....295-300
  base metal....190-195
  new machinery casting....155-160
  machinery casting....140 - 145
  aluminum foil....170-173
  UBC....123 - 128
  turning....116-123

(IRUNIV SUU)

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