Aluminium Scrap Market Price Surges by 3-5 Yen/kg, Tokyo

Aluminium scrap market price surged by 5 yen per kilogram for high grade scrap and by 3-5 yen for low grade scrap around Tokyo in the first half of March. Market price is likely to increase more. Some of scrap dealers are withholding inventories with an expectation for market price upsurge.

Local secondary aluminium alloy makers and scrap dealers concluded price negotiations for March 1st-15th shipment last week and agreed in price hike. Alloy makers’ purchasing prices increased to 181-186 yen per kg for new cutting scrap, 139-144 yen for casted machine scrap and 122-127 yen for alloy turning scrap.

Meanwhile, market price of used beverage can slightly increased to 134-139 yen. Japanese makers’ secondary aluminium base metal price upped to 195-200 yen for ADC10 grade.

Scrap market price reflected strong trend of primary aluminium market price at London Metal Exchange as well as tight balance of local scrap supply and demand. Local secondary aluminium alloy makers are recently increasing scrap procurement along with their active operations. However, aluminium scrap generation maintains slow in winter.