Russian AK5M2 secondary aluminum feedstock prices remained under downward pressure for a second week from weak export demand, Japanese buyers said Tuesday.

Several Russian producers Tuesday offered $1,940/mt CIF Japan for AK5M2 feedstock with 1% zinc and 0.85% magnesium content, a Japanese secondary aluminum alloy smelter source said. Offers were above $2,000/mt CIF Japan in late February, Japanese buyer sources said.

Another Japanese trader reported offers at $1,960-1,980/mt CIF Japan for April-May loading, adding: "Japanese buyers want below $1,900/mt CIF Japan."

The most recent deal confirmed was on March 27, at $1,980/mt CIF Japan, for 1% zinc and 0.5% magnesium material for April loading.

"Demand from Japan has been less than expected, possibly due to the impact of the Japanese value added tax rising to 8% from 5% in April, affecting automotive components demand," the aluminum smelter source said.

"Japanese secondary aluminum alloy smelters are not buying because alloy sales prices have not risen and they want to keep feedstock prices low," a Japanese trader said.

The short-term outlook for aluminum alloy prices was bearish due to Japanese automakers cutting production in April from March as the increase in VAT impacted car sales and amid the global fall in scrap aluminum prices, market sources said.