Aluminium Scrap Market Price Slightly Lowers in Osaka

Aluminium scrap market price decreased by 2 yen per kilogram for high grade scrap around Osaka when primary aluminium market price maintains downtrend. Local secondary aluminium alloy makers purchase high grade new cutting scrap at around 150 yen per kg, aluminium sash scrap at around 127 yen and used aluminium beverage can at 105-111 yen.

Primary aluminium ingot settlement was US$ 1,991.50 per tonne at London Metal Exchange on December 23, which was US$ 78.90 lower than the settlement on the previous day. Japanese aluminium re-rollers’ breakeven point with imported primary ingot is estimated at 185 yen per kg, which is 5 yen lower than the level in first half of December.

Local secondary aluminium alloy makers decreased their aluminium scrap purchasing price by 2 yen per kg mainly for high grade scrap for second half of December shipment to reflect the weak offshore primary aluminium price. Some alloy makers implemented the price cut by 5 yen in the cases the price had been relatively high.

As for low grade scrap, the purchasing price was almost unchanged from the first half of December despite of slight price gap between several alloy makers. One scrap dealer said scrap delivery is inactive when primary aluminium market price turned down although scrap trading used to be busy in usual yearends.See an attached table.