Korea's major aluminum flat rolling refineries took work to cut selling prices by 10,000 won per ton over May, attributable to the weakness of $23.3 per ton of the LME aluminum value in April. The recent stronger exchange rate of the Korean currency for US dollar limited the degree of downside.
By company, Choil aluminum set for its 0.3mm foil aluminum sheet and strip prices at 3,280,000 won fallen by 10,000 won per ton from April and its local exporting prices scaled down $30 per ton to $2,740 per ton over the Shipment. Novelis Korea also lowered its selling price to between 3,030,000~3,050,000 won per ton depending upon the relationship with the clients.
Korea’s aluminum flat product selling prices at the home market are traditionally influenced by the LME aluminum average price which decreased $23.26 per ton to $1,848.9 per ton in April 2019. On the contrary, the foreign exchange rate of Won was stronger by 10.23 won to 1,140.95 for the US Dollar from the March trading averaged 1,130.72 won.
World aluminum production has slightly been upward, while the consumption remained subdued. According to the International Aluminum Association, the total primary aluminum production in the world increased 0.8 percent in March, which was larger from the same month last year of 5,372,000 tons, totaling 5,414,000 tons in March. Conversely, the world aluminum consumption over the first two months this year dropped 3 percent around to 11,205,000 tons, in the face that the China’s production share will be slowed down because of the government’s environmental protection beginning this year. China’s new permit of strip mining is no longer since July this year, ensuing the production contraction too. China’s supply problem therefrom led to the diluted growth in the global aluminum production growth, causing to push up the bauxite prices in China.
At present, Korea’s important aluminum premium indicator, Main Japanese ports Premium, is said to have concluded to hike to $105 per ton for the second quarter this year, which was 24% higher from the first quarter of $84 per ton, turning upward in three quarters.
Source: Steel&Metal News |
