Al Scrap Market Price Levels Off with Potential Decrease, Tokyo

Aluminium scrap market price levels off with potential decrease around Tokyo. Local secondary aluminium alloy makers purchase new cutting aluminium scrap at around 156-161 yen per kilogram and aluminium alloy turning scrap at around 106-111 yen. Primary aluminium future price at London Metal Exchange was weak at US$ 2,150-2,200 per tonne on Monday. To reflect the weak indicator, aluminium scrap market price might decrease toward April.

Domestic demand is slowing for aluminium scrap. Many secondary aluminium alloy makers and primary aluminium re-rollers are closing their fiscal year at the end of March and taking their product inventories. Thus aluminium scrap shipment is rather decreasing for these consumers, said several scrap dealers around Tokyo.

Aluminium scrap dealers are willing to increase their inventories to prepare for the demand recovery in and after April. However, the scrap supply maintains very little. One scrap dealer pointed out scrap generation volume is dropping from factories since manufacturing industry suffers low operation. Sash scrap supply is also tight due to few demolition works. Scrap dealers seem to be concerned on tough material procurement and high cost price.