Al Scrap Price Declines with Less Demand, Tokyo

Aluminium scrap purchasing price by secondary aluminium alloy makers is decreasing by 5-10 yen per kilogram around Tokyo this week from the end of December. Alloy makers are purchasing new cutting scrap at 120-125 yen per kg and pressed can scrap at 80-85 yen per kg. The market price is lowering when the demand for scrap continues weakening despite of overseas primary aluminium price is stable this month.

Primary aluminium at London Metal Exchange was US$ 1,590-1,600 per tonne at 3-month purchasing price in afternoon trading on 7 January. The telegraphic transfer selling rate kept strong at around 92-93 yen per US dollar. With these indicators, domestic market price of primary aluminium ingot sustains the level at 150-155 yen per kg without freight.

Meanwhile, secondary aluminium alloy makers are widening their production cuts. They plan to halt operations for total a half month in January in order to adjust the supply along the order receipt decrease. As a result, the alloy makers are canceling aluminium scrap procurement for the first half of January. An alloy maker source said they might stop scrap purchasing even in the second half of January.