Russia Cuts Secondary Aluminum Prices to Japan

Some Russian producers have cut prices of secondary aluminum alloy by $100/mt within a week as demand weakens, said Japanese market sources yesterday. There was offering of $2,690/mt CIF Japan for shipment to Japan in June or July, $100/mt lower than last week, released a source from a Japanese manufacturer. Another Japanese trader said he was offered $2,730-2,740/mt CIF Japan for June or July shipment, a $40/mt reduction from last week. Some Japanese automakers use AK5M2 as a substitute for Chinese ADC12, as they are similar in mineral compositions with the latter contains less silicon and more magnesium. Prices usually fall when Russian producers restart production in April following annual winter production suspend, a period before Japanese manufacturers decide requirements for the coming quarter. But it is worse this year because some major Japanese automakers are considering cutting production of high-end models in the third quarter due to weak exports to the United States. The US dollar gaining strength against the yen has also cooled buying interest, not just for AD5M2 but also for ADC12, sources said. COPYRIGHT All rights reserved. The copying, republication or redistribution of WAM News Content, including by framing or similar means, is expressly prohibited without the prior written consent of WAM.