Platts
Spot ADC12 aluminum alloy trade down ahead of summer holidays
Edited by : AL CIRCLE
2 min read
Spot ADC12 aluminum alloy offers from Europe to Japanese buyers have decreased over the past two weeks ahead of the approaching summer holidays in Europe, Japanese buyer sources said Tuesday.
European smelters have been active in the Japanese market in May, offering spot supplies $50-100/mt below levels offered by Chinese smelters -- the main suppliers in Asia, Japanese traders said.
But over the past two weeks not only have offers become limited, levels at which offers were being made had also gone above China producers' -- Europeans were offering $10-40/mt above offers made by Chinese producers, said Japanese traders.
Last week, a Spanish smelter, which exports 1,000-2,000 mt/month into Japan, stopped spot offers as it will cut output in the coming quarter due to the summer holidays, said two Japanese traders.
Two Italian smelters, which were currently offering spot July shipments, will limit August shipments also due to the holidays, said one Japanese trader.
Meanwhile, offers from European smelters have also gone up. For July shipments, an Italian smelter was offering at $2,180/mt CIF Japan and another at $2,200-2,210/mt CIF Japan. In comparison, China smelters were offering at $2,150-2,180/mt CIF Japan, Japan-based traders said.
The Italian smelters, however, have attributed the higher offers to an increase in feedstock costs of aluminum scrap, traders said.
European smelters have been active in the Japanese market in May, offering spot supplies $50-100/mt below levels offered by Chinese smelters -- the main suppliers in Asia, Japanese traders said.
But over the past two weeks not only have offers become limited, levels at which offers were being made had also gone above China producers' -- Europeans were offering $10-40/mt above offers made by Chinese producers, said Japanese traders.
Last week, a Spanish smelter, which exports 1,000-2,000 mt/month into Japan, stopped spot offers as it will cut output in the coming quarter due to the summer holidays, said two Japanese traders.
Two Italian smelters, which were currently offering spot July shipments, will limit August shipments also due to the holidays, said one Japanese trader.
Meanwhile, offers from European smelters have also gone up. For July shipments, an Italian smelter was offering at $2,180/mt CIF Japan and another at $2,200-2,210/mt CIF Japan. In comparison, China smelters were offering at $2,150-2,180/mt CIF Japan, Japan-based traders said.
The Italian smelters, however, have attributed the higher offers to an increase in feedstock costs of aluminum scrap, traders said.
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