Osaka Secondary Al Makers Set Scrap Purchasing Price Flat

Secondary aluminium alloy makers and aluminium scrap dealers around Osaka seem to have agreed to set scrap price almost unchanged for August 16-31 delivery. Scrap price kept flat to reflect price down of primary aluminium ingot and arrival of cheap base metals from Russia. Secondary aluminium alloy makers around Osaka purchase new cutting aluminium scrap at 160-170 yen per kilogram, casted machine scrap at 135-145 yen per kg, pressed sash scrap at 135-145 yen per kg, aluminium alloy turning scrap at 120-130 yen per kg and pressed beverage can scrap at 125-130 yen per kg.

Primary aluminium market price was US$ 2,146 per tonne at settlement of London Metal Exchange on Wednesday, higher by US$ 11 than the previous day. Latest settlement was US$ 157.7 higher than the monthly average settlement in July. Meanwhile, yen exchange rate has sharply strengthened in August and, as a result, domestic primary aluminium price has lowered by 5 yen to 200 yen per kg since the beginning of August.

Aluminium scrap supply is tight in Japan due to low scrap generation after Japanese summer holidays in mid August. However, secondary aluminium alloy makers comment they don’t need to secure aluminium scrap even at high price. The main factor is arrival of Russian cheap base metal. Russian base metal’s price is around 170 yen per kg, 10-20 yen lower than Japanese materials. A trader source said Russian base metal is scheduled to arrive continuously in September.