Secondary Aluminium Spot Market Price Edges Upward, Osaka

Spot market price of secondary aluminium ingot is edging upward around Osaka. The price has increased by 5 yen per kilogram or more since early August. Secondary aluminium alloy makers, the main users of secondary aluminium ingot, are increasing the procurement volume along their operative recovery. The local supply is tightening. Moreover, market price of engine scrap, one of main materials for secondary aluminium, is surging.

Secondary aluminium alloy makers are currently raising their operating rate along car makers’ output recovery. The operating rate is presently as high as a year earlier or the output volume is higher than in the same month of a year ago. Then orders are increasing for secondary aluminium ingot.

Meanwhile, material price is surging. Local market price of engine scrap containing iron and aluminium is 52-58 yen per kg. The price level is high even though copper and aluminium prices at London Metal Exchange, the indicators, were recently weak. The main reason is low generation of engine scrap.

Deletion registration of cars in Japan largely decreased in and after September 2010, when the governmental incentive program for environmental friendly cars ceased. Car deletion registration number suggests engine scrap generation volume. The figure represented year-to-year minus for 10 straight months by July 2011. One secondary aluminium alloy maker said they cannot accept a spot order at below 200 yen per kg due to material cost upsurge.