Hydro will increase prices for converting uncoated rolled aluminium products from its General Engineering Product Group (GE) by 75 Euro per tonne, effective July 2010. To make prices more transparent, GE customers can also request a separate calculation of the fluctuating metal premium as of Q3 this year.
Hydro has steadily increased prices for uncoated rolled aluminium products from its General Engineering Product Group over the last three quarters. However, the costs for alloyed and unalloyed metal have risen further after each price adaptation. In addition, the higher premiums were largely due to tightness in the metal supply with the rising costs of financing the purchasing of metal.
For this reason, a price increase of €75 per tonne has been introduced for all deliveries of uncoated rolled aluminium products supplied to the general engineering industry that are still not subject to agreement, for deliveries in July 2010.
To ensure greater price transparency, Hydro is offering all customers a new style of price configuration from Q3 2010. The fluctuating metal premium, which was always included in the conversion price in the past, can thus be calculated along with the LME quotation as a sliding-scale, formula-based price in the future.
Production capacity for magnesium-containing alloys for the second quarter has already been allocated for some weeks. Lead times for commercial-purity alloy 1050 at Hydro now stretch to June 2010.
At our rolling mills, the customary weekly capacity for standard products supplied at short notice is planned for the third quarter; as in previous times. However, the rolling mills in Norway will close for three weeks during the summer holidays.