07 MARCH 2012Platts
Japan end-users eye diversifying aluminum to reduce costs
Edited by : AL CIRCLE
1 min read
Japan's rolling mills are considering the possibility of using non-Good Western grade aluminum to cut purchase costs, local market sources said Tuesday.
The suggestion to diversify aluminum supply sources to non-Good Western grades, including brands not registered on the London Metal Exchange, came from two overseas producers who were proposing to hike second quarter premiums by 18% from the first quarter, sources said.
"Japanese end-users have experimented with various grades so they may be ready for a shift, including [to] non-LME registered brands," a trader said. Even high-grade aluminum scrap from domestic plants have been reused in the past as a substitute for primary aluminum, he added.
The suggestion to diversify aluminum supply sources to non-Good Western grades, including brands not registered on the London Metal Exchange, came from two overseas producers who were proposing to hike second quarter premiums by 18% from the first quarter, sources said.
"Japanese end-users have experimented with various grades so they may be ready for a shift, including [to] non-LME registered brands," a trader said. Even high-grade aluminum scrap from domestic plants have been reused in the past as a substitute for primary aluminum, he added.
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