Platts
Aluminum producers seek 30-70% hike in 2013 billet upcharge to Japan
Edited by : AL CIRCLE
1 min read
Producers of primary aluminum billet have offered Japanese buyers a 30-70% hike in the 6063 billet upcharge for 2013 term contracts, from $150/mt for 2012, sources in negotiations said Monday.
Negotiations between Japanese rolling mills, trading houses and overseas aluminum billet producers for 2013 contract premiums started earlier this month, buyer and seller sources confirmed.
Two Japanese buyers said producers are asking for $50-100/mt raises in the billet upcharge, or fee for processing primary aluminum ingot into billet that contains more silicon and magnesium than 99.7%-purity aluminum. The 6063 billet, widely used for construction material, contains 0.2-0.6% silicon and 0.45-0.9% magnesium.
Buyers said producers are asking for a major hike in Japan as upcharge levels in other major markets, such as the US, have risen.
The 6063 billet upcharge in the US stood at 12-13 cents/lb ($264-286/mt) on a delivered basis last week, according to Platts' assessments. Producer sources were not immediately available for comment.
Negotiations between Japanese rolling mills, trading houses and overseas aluminum billet producers for 2013 contract premiums started earlier this month, buyer and seller sources confirmed.
Two Japanese buyers said producers are asking for $50-100/mt raises in the billet upcharge, or fee for processing primary aluminum ingot into billet that contains more silicon and magnesium than 99.7%-purity aluminum. The 6063 billet, widely used for construction material, contains 0.2-0.6% silicon and 0.45-0.9% magnesium.
Buyers said producers are asking for a major hike in Japan as upcharge levels in other major markets, such as the US, have risen.
The 6063 billet upcharge in the US stood at 12-13 cents/lb ($264-286/mt) on a delivered basis last week, according to Platts' assessments. Producer sources were not immediately available for comment.
Previous article
Indian Aluminum Price Sees Small Price Drop
Next articleLME aluminum should move between USD 1,880-1,910/mt on 30th Oct: SMM Morning Review
Grow with
AL Circle
