Japan Aluminium Scrap Price Drops by 5 yen/kg

Japanese aluminium scrap price decreased by around 5 yen per kilogram both for high and low grade scrap in the week. Domestic secondary alloyed aluminium makers pay 140-145 yen for new cutting scrap and 95-100 yen for used beverage can scrap.

The alloy makers reduce the scrap purchase price under lower offshore market and higher yen rate. The offshore aluminium price decreased to as low as US$ 1,800 per tonne, which was near US$ 200 lower than year-high of US$ 2,016 in mid-August. The conditions represent near 20 yen per kg lower breakeven point for imported primary aluminium ingot.

Domestic supply of aluminium scrap is still tight. However, the demand is also slow from the alloy makers. The alloy makers can secure the scrap at the current price level for the low level operation rate. The makers reduced the used can scrap purchase price by around 5% to adjust the overstock condition.