Aluminium Scrap Market Price to Turn Upward in Tokyo

Aluminium scrap market price is expected to turn upward around Tokyo in April after a half-year decline. The scrap generation is remarkably decreasing due to economy recession. Meanwhile, domestic secondary aluminium alloy makers are gradually increasing spot scrap procurement because inventory adjustment of secondary aluminium advanced and the ingot demand seems to hit the bottom.

A large scrap dealer around Tokyo said Japanese secondary aluminium makers would face difficulty in aluminium scrap procurement in and after April because the makers have largely minimized scrap purchasing since autumn 2008. The source said domestic makers should add premium at about 20 yen per kilogram on the market price in order to secure aluminium scrap. Another scrap dealer said they would offer 95-100 yen per kg for aluminium sash scrap against domestic makers. The scrap dealers show strong selling stances.

Another background is strong scrap demand from China. A Japanese trader source said Japanese export price of aluminium sash scrap is currently as high as C&F$ 870 per tonne. The export price seemed to become relatively weak in March but, in fact, shows an upward sign.