The assessments are:
– Annual aluminium wheel alloy silicon 7 ingot cif main Japanese ports (Yokohama, Osaka, Nagoya)
– Annual aluminium wheel alloy silicon 7 ingot cif main South Korean ports (Busan, Gwangyang, Incheon)
Specifications for annual aluminium wheel alloy silicon 7 ingot cif main Japanese ports are:
Price: Annual aluminium wheel alloy silicon 7 ingot cif main Japanese ports (Yokohama, Osaka, Nagoya)
Type: Assessed range
Basis: Cif in main Japanese ports at Yokohama, Nagoya and Osaka, duty-unpaid premium on top of P1020 ingot premium and LME cash prices
Grade: Primary Foundry Alloy silicon 7 A356.2 for wheel production
Currency: USD
Unit: Tonne
Minimum lot size: 500 tonnes
Payment terms: Letter of Credit or Telegraphic Transfer or cash against documents (3-5 days after bill of lading date)
Delivery window: Within 4 weeks
Publication: Annual, after deals for long-term contracts are completed between major Japanese buyers and international producers and traders with negotiations starting in October through to December
Specifications for annual aluminium wheel alloy silicon 7 ingot cif main South Korean ports are:
Price: Annual aluminium wheel alloy silicon 7 ingot cif main South Korean ports (Busan, Gwangyang, Incheon)
Type: Assessed range
Basis: Cif in main South Korean ports at Busan, Gwangyang and Incheon, duty-unpaid premium on top of P1020 ingot premium and LME cash prices
Grade: Primary Foundry Alloy silicon 7 A356.2 for wheel production
Currency: USD
Unit: Tonne
Minimum lot size: 500 tonnes
Payment terms: Letter of Credit or Telegraphic Transfer, other payments terms normalised
Delivery window: Within 4 weeks
Publication: Annual, after deals for long-term contracts completed between major South Korean buyers and international producers and traders with negotiations starting in October through to December
Metal Bulletin is launching the annual premiums to complete the series of foundry alloy premiums Metal Bulletin already publishes for the rest of the world.
The Japan and South Korea markets are good representations for the foundry alloy markets in Asia given the size of their automotive industries and these markets being the largest importers of foundry alloys in Asia.
The premiums will be published after annual deals are completed between major buyers and international producers and traders. Negotiations typically start in October through to December.
These annual premiums will be assessed in place of weekly or monthly spot premiums due to a lack of liquidity in the spot market in the region. Market participants have indicated 95-100% of imported volumes are settled on an annual contract basis for both markets.
Foundry alloy is an important aluminium value-added product (VAP) for use in wheel alloys in the automotive industry. Metal Bulletin hopes to bring more transparency to the foundry alloy market as the global automotive sector continues to grow.
The consultation period for this proposed launch will end one month from the date of this pricing notice, on Friday November 10, 2017, with changes taking place from Monday November 13.
To provide feedback on this price or if you would like to provide price information by becoming a data submitter to this price, please contact Vivian Teo by email at: pricing@metalbulletin.com. Please add the subject heading FAO: Vivian Teo, re: Annual aluminium wheel alloy silicon 7 ingot cif main Japanese ports / Annual aluminium wheel alloy silicon 7 ingot cif main South Korean ports
See all Metal Bulletin pricing methodology and specification documents on the Metal Bulletin website.
