Platts
Chinese aluminum alloy offers fall ahead of close of Toyota buy tender
Edited by : AL CIRCLE
2 min read
Offers for Chinese ADC12 aluminum alloys have dropped in the last two days ahead of the close of Toyota Motor's tender seeking 10,000 mt/month of molten aluminum alloy and ingot for January-March 2014 on Monday, Japanese traders said Friday.
At least two Chinese alloy producers have reduced offers by $5/mt compared to earlier this week, traders said. One producer offered at $2,135/mt CFR Japan for February-loading cargoes, saying December-January cargoes were limited due to the Lunar New Year holidays at the end of January. Another producer, who offered at $2,135/mt CFR Japan, said that December cargoes were available.
The most competitive offers were for Nigerian alloy at $2,115-2,225/mt CFR Japan for December shipments, traders said.
Offers fell as the yen strengthened against the dollar, which has been trading above Yen 102 since Wednesday, compared with Yen 99-100 two weeks ago. Japan's spot imports fell as the stronger yen increased purchase costs by 1-2%.
Other car and automotive component makers plan to buy smaller volumes of less than 500 mt/month via tender in December.
Toyota Motor is expected to raise its daily passenger car output to 14,000-15,000 vehicles/day in January from 12,000 vehicles/day in October, sources said. Nissan Motor and Honda Motor are expected to hold their output at around 4,000-4,500 vehicles/day for Q1, unchanged from October, several sources close to the automakers said.
Japanese automakers do not usually comment on their production plans.
At least two Chinese alloy producers have reduced offers by $5/mt compared to earlier this week, traders said. One producer offered at $2,135/mt CFR Japan for February-loading cargoes, saying December-January cargoes were limited due to the Lunar New Year holidays at the end of January. Another producer, who offered at $2,135/mt CFR Japan, said that December cargoes were available.
The most competitive offers were for Nigerian alloy at $2,115-2,225/mt CFR Japan for December shipments, traders said.
Offers fell as the yen strengthened against the dollar, which has been trading above Yen 102 since Wednesday, compared with Yen 99-100 two weeks ago. Japan's spot imports fell as the stronger yen increased purchase costs by 1-2%.
Other car and automotive component makers plan to buy smaller volumes of less than 500 mt/month via tender in December.
Toyota Motor is expected to raise its daily passenger car output to 14,000-15,000 vehicles/day in January from 12,000 vehicles/day in October, sources said. Nissan Motor and Honda Motor are expected to hold their output at around 4,000-4,500 vehicles/day for Q1, unchanged from October, several sources close to the automakers said.
Japanese automakers do not usually comment on their production plans.
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