Aluminium Scrap Market Price in Weak Tone, Tokyo

Aluminium scrap market price is weak around Tokyo when overseas primary aluminium market price, the indicator, maintains low. Local secondary aluminium alloy makers and scrap dealers agreed in price down by 7-8 yen per kilogram for high grade scrap and by 3-4 yen per kg for low grade scrap for December 1-15 shipment. Scrap dealers feel the price might continue to decrease for December 16-31 since primary aluminium price at London Metal Exchange keeps weak and local alloy makers are not aggressive in additional material procurement.

Some of secondary aluminium alloy makers say price down is insufficient mainly for high grade scrap and they will offer additional price cut for December 16-31. Meanwhile, aluminium scrap generation maintains very little and scrap dealers are in tough competition to collect materials. Scrap dealers are forced to approve high offer prices to secure enough volume scrap. One scrap dealer complained their margins are shrinking.

Local secondary aluminium alloy makers continue stable productions while they are cautious in additional material procurement. Alloy makers hold abundant volume of Russian base metal AK5M2 inventories, purchased at low prices. Materials are not short at alloy makers.