Japan alloy rush may boost US zorba

Jul 24, 2014 | 04:51 PM | Sean Davidson

Tags  scrap, aluminum, zorba, China, Japan, secondary alloy, ADC12, Sean Davidson

NEW YORK — Domestic and export prices for zorba, a nonferrous auto shred comprised mostly of aluminum, could trek higher in August as Chinese smelters look to fill up inventories to cater to strong alloy demand from Japan, according to some market participants.

China’s secondary aluminum smelters account for the majority of the alloy supply to Japan’s die casters, and source zorba as their primary raw material.

Some exporters said that a rush by Japan’s auto sector for Chinese secondary aluminum alloy ADC12 stemmed from supply disruption concerns, and has already led to some smelters committing to alloy sales for the last three months of the year.

Other smelters are expected to enter negotiations with Japan’s die casters as early as next week, which is highly unusual as this is nearly four to six weeks before Japan’s die casters and China’s smelters have historically negotiated prices and supply for the last quarter of a calendar year.....

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