Secondary Al Base Metal Price Keeps Strong Uptrend, Tokyo

Secondary aluminium alloy makers’ selling price of ADC10 grade base metal keeps strong uptrend at around 190-195 yen per kilogram around Tokyo. Primary aluminium 3-month future price at London Metal Exchange continued surging to US$ 2,570 per tonne at purchasing price in afternoon trading on Monday. Secondary aluminium alloy makers and alloy users around Tokyo concluded price negotiations for February 16-28 shipment to raise the price by 5-7 yen to around 195 yen per kg.

Scrap generation is decreasing, especially for used automotive engine which is major material for ADC10 grade base metal. One alloy maker around Tokyo said scrap arrival volume was almost half of usual years in January while declined to one third in February. Meanwhile, local alloy makers’ output seems to be slightly increasing. Demand and supply balance keeps very tight for ADC10 grade base metal.