The Current Japanese Aluminum Raw Materials Market, Tightness of Lower Grade Goods

                                          IRUNIV 2013/08/22

 The aluminum raw materials market conditions after Bon Festival on August didn’t change with before the festival with a continuation of tightness, and as for the result the market is still up at high price. Second half of August, each company of aluminum alloy makers was, on the surface, trying to stabilize the first half of the month, but every district of Kansai, Chubu, and Kanto are raising the quality goods +2 yen/kg, and lower grade goods for about +3 yen/kg, in the manner of being pressed by supply and demand stringency. Some raise on LME Aluminum and NSP Market will also be taken into consideration.

*NSP Changing Graph (from April)

The buying price of secondary aluminum alloy maker’s (Kanto District)
(Yen / maker’s bottom price based per kg)
 2S new cutting・・・・173〜178
 printing plate・・・・176〜181
 63 grade sash・・・168〜173
 52 grade alloy・・・・160〜165
 screw included sash・・・・145〜150
 aluminum bronze radiator・・・・300〜305
 base metal・・・・198〜203
 engine casting・・・・158〜163
 new machinery casting・・・・163〜168
 machinery casting・・・・・146〜151
 aluminum foil・・・173〜178
 UBC・・・・・・127〜135
 turning・・・・123〜132
 casting turning・・・138〜143

 It is a long time, that in the city where tightness is uneven, maker is continued to be told, “the good isn’t here, isn’t here” with summer slack + stinginess, but it looked like this tightness was different according with dealers and makers. There’s story that Deoxidation Material Alloy Maker said, “It’s the highest record of arrived goods”, and there’s also story heard, that sash scraps was entering too much for the largest alloy maker D company. Furthermore, there’s also information, that Exporting Dealer EW Company, too, has 63 screw included sash scraps coming in as much as they can’t be dealt. However, at Chubu District and Kansai District, there’s stringency, and the reason is “Lower grade goods, especially, has tightness by The Russian lump (AK5M2) continuing at a highest level”.

(Import Lump OFFER Situation)
 AK5M2・・・USD2000〜2030/ton(CIF Japan)
 ADC12(Sigma)・・USD2180〜2190/ton(CIF Japan)
 ADC12(Yechu)・・USD2140〜2150/ton(CIF Japan)
 ADC12(Alco)・・・USD2130〜USD2140/ton(CIF Japan)
It is stated that the Russian lump was successful in active buying of Toyoda Tsusho, fell below 2000 dollars at one time, but then rose up to 2030 dollars again.

The Korean buying is also up to high price
 The same as buying of domestic alloy maker, the buying on Korean side was also up to high price. Screw included is about USD 1620/ton) and UBC is about USD 1460/ton (Both is also CFR KOREA). About price, the screw included sash with JPY 159/kg, and UBC is JPY 143/kg. UBC purchased PoscoMTech of the world-famous Noveris and POSCO related deoxidation material maker. Either, JPY 137 to 138/kg with piled-up container base. The highest domestic price value is Shinryo about 140 yen, but the one who rival this is Korea. It’s like the image of UBC keeping high price towards Shinryo and Korea.
 Raw materials market is as usual balancing price like this, but when becoming the product ADC12, the port arriving price of Yiechu production D12 is JPY 221/kg and it’s cheaper than quarter of long term unit price this time (225 to 230 yen). High raw material cheap products is, as usual nowadays, aluminum alloy and raw materials market.
(IRuniverse Susan)

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