25 JULY 2012Platts
European secondary aluminum alloy offers forJapan pick up pace
Edited by : AL CIRCLE
2 min read
Offers of European secondary aluminum alloy into Japan has picked up pace this week with the euro trading against the yen at a 10-year record low of Yen 94-95 Monday, Japanese traders said Tuesday.
So far this week, one Spanish producer has offered ADC12 secondary aluminum alloy at $2,095/mt CFR Japan to a Tokyo-based trader and $2,120/mt CFR Japan to another Tokyo-based trader. The offers were $50-100/mt lower than offers coming from Chinese producers who regularly supply into Japan.
Last week there was just one deal done from Europe -- a Russia-based producer sold 300-500 mt of secondary aluminum alloy to a Japan trader at $2,100/mt CFR Japan for August shipment.
Spanish and Italian aluminum alloy producers had started pitching up sales into Japan from April, as European alloy consumption slowed on falling passenger vehicle sales in the region, sources said.
Japan's aluminum alloy imports from Spain for the period from January to May 2012 were 9,812 mt, the highest on Japan's customs record.
From late June however, the Europeans retreated from making spot sales into Japan, saying their plants were to shut in the third quarter for month-long summer holidays.
One Europe-based producer has resumed making spot offers this week, taking advantage of the weaker euro, and for destocking inventory as he expects prices to decline in Europe, Japan-based traders said.
There was no deal reported for European alloy this week, but traders said deals are likely to be concluded as some major Japan-based diecasters had bid at $2,100/mt CFR Japan or less previously.
Cargoes leaving Europe in early September are expected to arrive in Japan in November.
JAPANESE AUTO OUTPUT SLOWS
Meanwhile, overseas suppliers and Japanese secondary aluminum alloy smelters will be facing tough competition in the 40,000 mt/month Japanese market, as demand has started to slow down this month.
Local trade and diecaster sources said Toyota Motor will maintain its daily passenger car output at 15,000 vehicles/day for July, but two other automakers may have reduced output by around 5% from June.
Further automotive output cuts are expected in the fourth quarter as the government subsidies to support fuel-efficient passenger vehicle sales are expected to end this quarter as budget is running low, sources said.
So far this week, one Spanish producer has offered ADC12 secondary aluminum alloy at $2,095/mt CFR Japan to a Tokyo-based trader and $2,120/mt CFR Japan to another Tokyo-based trader. The offers were $50-100/mt lower than offers coming from Chinese producers who regularly supply into Japan.
Last week there was just one deal done from Europe -- a Russia-based producer sold 300-500 mt of secondary aluminum alloy to a Japan trader at $2,100/mt CFR Japan for August shipment.
Spanish and Italian aluminum alloy producers had started pitching up sales into Japan from April, as European alloy consumption slowed on falling passenger vehicle sales in the region, sources said.
Japan's aluminum alloy imports from Spain for the period from January to May 2012 were 9,812 mt, the highest on Japan's customs record.
From late June however, the Europeans retreated from making spot sales into Japan, saying their plants were to shut in the third quarter for month-long summer holidays.
One Europe-based producer has resumed making spot offers this week, taking advantage of the weaker euro, and for destocking inventory as he expects prices to decline in Europe, Japan-based traders said.
There was no deal reported for European alloy this week, but traders said deals are likely to be concluded as some major Japan-based diecasters had bid at $2,100/mt CFR Japan or less previously.
Cargoes leaving Europe in early September are expected to arrive in Japan in November.
JAPANESE AUTO OUTPUT SLOWS
Meanwhile, overseas suppliers and Japanese secondary aluminum alloy smelters will be facing tough competition in the 40,000 mt/month Japanese market, as demand has started to slow down this month.
Local trade and diecaster sources said Toyota Motor will maintain its daily passenger car output at 15,000 vehicles/day for July, but two other automakers may have reduced output by around 5% from June.
Further automotive output cuts are expected in the fourth quarter as the government subsidies to support fuel-efficient passenger vehicle sales are expected to end this quarter as budget is running low, sources said.
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