Aluminium Scrap Price Seems Decreasing in Tokyo

Price negotiation will close soon between secondary aluminium alloy makers and aluminium scrap dealers around Tokyo for shipment in the first half of September. The secondary aluminium alloy makers offered price down to some scrap dealers whose selling price didn’t decrease much in the second half of August. On the other hand, the alloy makers are likely to keep their purchasing prices unchanged for the other dealers whose prices downed by 30 yen per kilogram for high grade scrap and by 20 yen per kg for low grade scrap in the second half of August.The alloy makers aim to reduce their purchasing price against all scrap dealers in the first half of September following the price down in the second half of August. However, the price down seems actually difficult when aluminium scrap supply became tighter around Tokyo.Domestic primary aluminium price became to 310-315 yen per kg in September, which temporarily declined by more than 60 yen from latest peak in July. Primary aluminium market dropped down at overseas in the second half of August. Additionally telegraphic transfer selling rate of yen sharply strengthened against US dollar at the same time.Scrap dealers increased their shipment volume in late August with concerns aluminium scrap price would decrease in September. Then local scrap supply became much tighter this month even though the supply maintained tight since late June.