Al Scrap Supply Collapses from Auto Engine around Tokyo

Aluminium scrap with ADC 10 grade supply decreased around Tokyo. Supply of the major source of waste automotive engine decreases when automotive scrapping decreases and old car is shipped as used car for major earthquake damaged northern part of Japan. Aluminium base metal makers cannot secure waste engine enough to keep the operation. The makers’ profitability is suffered from lower price and demand.

A major base metal maker around Tokyo said used automobile engine arrival in early May is less than half of the normal level of 2,000 tonnes per month. The maker would have to decrease the operation if the scrap supply remains current level.

The base metal makers are also suffered from lower selling price and demand. The buyers of secondary aluminium makers reduced the raw material purchase and some of them stopped the base metal purchase due to secondary aluminium output cut. The base metal price decreased by 3-4 yen per kilogram for first half of May due to lower demand and primary aluminium ingot price decline, according to industry source.