Aluminium Scrap Market Price Decreasing in Tokyo

Aluminium scrap market price is weak around Tokyo. The price is decreasing by 5-8 yen per kilogram for high grade scrap and by 3-5 yen per kg for low grade compared with the first half of June at purchasing price by secondary aluminium alloy makers. Primary aluminium price at London Metal Exchange is weak which downed by US$ 22.5 to US$ 2,637 per tonne at settlement on Monday from Friday.The price negotiation finished last week between local secondary aluminium alloy makers and aluminium scrap dealers for shipment in the second half of June. The makers’ purchasing price downed for the first time in 3 months to reflect the decline of overseas primary aluminium market and weaker yen against US dollar.Aluminium alloy makers had targeted the price down by 10 yen for high grade scrap and by more than 5 yen for low grade scrap. The down range was smaller than expected as a result because LME aluminium price temporarily rebounded after mid June and the foreign exchange rate of yen became even cheaper against US dollar.Aluminium scrap shipment is active. Local aluminium alloy makers seem to secure enough scrap inventories. Scrap dealers hurried their shipment in early June before the market price downs. Some aluminium alloy makers are in output reduction.