Secondary Al Alloy Makers to Set Scrap Purchasing Cost Unchanged

Secondary aluminium alloy makers around Tokyo will offer aluminium scrap dealers to set aluminium scrap price unchanged for shipment during 16-31 April compared with 1-15 April. Alloy makers aim to keep the purchasing cost flat though overseas primary aluminium market is currently recovering US$ 3,000 per tonne. However, some makers might approve the slight hike when primary aluminium price has rebounded and domestic scrap supply maintains tight.Primary aluminium at London Metal Exchange was US$ 3,048 per tonne at 3-month future purchasing price in afternoon trading on 14 April. The market tone was steady. Telegraphic transfer selling rate is around 102-103 yen per US dollar recently. Consequently domestic primary aluminium price is surging to 315-320 yen per kilogram, up by about 20 yen from the average during 16-30 March.Secondary aluminium alloy makers approved marginal price down of aluminium scrap effective for shipment during 1-15 April. Alloy makers aim to set the purchasing cost unchanged for the second half of April despite of higher primary aluminium price.The makers are also suffered from marginal price up of secondary aluminium alloy ingot. The price up was 5-7 yen per kg for March shipment. Makers’ profitability is impacted by higher material costs and lower ingot selling price.