Aluminium Scrap Price to Rise in Tokyo

Aluminium scrap purchase price by secondary alloy makers would increase around Tokyo. The market price is around 85-90 yen per kilogram for shredding scrap and at around 48-53 yen for aluminium alloy turning scrap.

The purchase by alloy makers is still at lower level. However, a dealer source said the makers would increase the procurement from the second half of this month. The makers apparently increase the purchase of some grades scrap. The scrap industry expects the recovery of the demand.

The inquiries from China, which are active in scrap import since the beginning of the year, strengthens further. Japanese exporters receive large inquiry for screwed sash scrap, which is exported heavily from Japan in February, and for some of higher grade scrap. Japanese dealer would increase the export to China.

However, some grades scrap generation, such as casting scrap for machine decreases significantly due to the low operation rate. Some of dealers concern export could tighten the domestic supply when the generation is not so much. A distributor source said there is not enough scrap generation and not so easy to increase the export. The price of export to China remains high. The domestic scrap market price would increase while the shipment slows.