Al Alloy Makers Unlikely to Reduce Scrap Purchase Price Widely

Japanese secondary aluminium alloy makers and aluminium scrap dealers started price negotiations for shipment in the first half of April this week. Major alloy makers seemed to offer price down by 10 yen per kilogram for high grade scrap and by 5 yen per kg for low grade scrap. However, the price is unlikely to decrease by the offered range when primary aluminium price rebounded in late March and aluminium scrap supply is tightening.Domestic market price of primary aluminium is recently around 310 yen per kg, which temporarily declined to around 290 yen per kg. Alloy makers initially planned to offer price down by 15 yen per kg for high grade scrap and by 10 yen per kg for low grade scrap. Primary aluminium price rebounded in late March and, said alloy maker source, they became unable to decrease their purchasing price widely.Aluminium scrap supply is tightening. Scrap collectors increased their shipment after mid March with concerns that primary aluminium price might decline. Now scrap dealers are suffered from less scrap arrivals in April. Makers’ aluminium alloy production keeps the high level.