Secondary Al Makers Set Scrap Purchasing Price Unchanged, Tokyo

Aluminium scrap dealers and secondary aluminium alloy makers around Tokyo almost concluded their price negotiations for March 16-31 shipment. The alloy makers mostly set the purchasing prices unchanged at around 156-161 yen per kilogram for new cutting aluminium scrap, 127-132 yen per for casted aluminium machine scrap, 128-133 yen for aluminium sash scrap and 111-116 yen per kg for used aluminium beverage can scrap.

Primary aluminium three-month price at London Metal Exchange is weak at US$ 2,200-2,300 per tonne. However, telegraphic transfer selling rate weakened to 84-85 yen per US dollar. Thus domestic primary aluminium price is almost unchanged. Local scrap dealers and secondary aluminium alloy makers have smoothly concluded price talks with few distinct indications.

The demand is stable for both high and low grade aluminium scrap from the alloy makers in March. Meanwhile, one major dealer pointed out the demand is not strong. Most scrap dealers feel the supply and demand are balanced at very low volume.

Current price and demand conditions are likely to continue within this month. Some of makers will finish the financial year at the end of March and then they will carry out stocktaking at the yearend. Some dealers are concerned scrap orders might temporarily decrease in late March while some dealers consider there will be little negative impact since the alloy makers are expected to continue usual material procurement until March 27.