Japan: Aluminium ingot prices remain stable for Oct-Dec'23

The loading price (base price) of aluminum ingots with large strings, which serves as an indicator for the price of Japanese rolled aluminum products sold in stores, has been set at JPY 390/kg ($3/kg) for the October-December 2023 period. This price remains unchanged from the previous quarter (July-September), according to Japan Metal Daily report.

It is worth noting that the base price had declined for four consecutive quarters, starting from JPY 480 in the July-September 2022 period. However, it appears that this decline has temporarily halted.

The price of rolled aluminum products like plates and extruded materials, is influenced by the price of aluminum ingots. The base price is determined by the average monthly domestic bullion price linked to the LME price, with an extra JPY 10 for shipping costs. In recent months, domestic aluminum ingot prices have stayed between JPY 370 and JPY 390, so market participants expected the reference price to remain stable.

While it is not expected that the price revision of rolled aluminum products may be implemented in October 2023 due to fluctuations in aluminum ingot prices, the market is currently experiencing a strong sentiment due to the implementation of roll margin revisions by certain rolling mills.

While the revision has already impacted the prices of thick and thin sheets in the distribution sector, extruded materials have yet to catch up. It is anticipated that the roll margin revision by a few rolling mills might continue to influence market fluctuations for the foreseeable future.

Note: This article has been written in accordance with an article exchange agreement between JMD and SteelMint.