Secondary Al Makers Cut Scrap Buying Price by 10 Yen/kg, Osaka

Secondary aluminium alloy makers around Osaka agreed with local scrap dealers to cut their purchasing price of aluminium scrap by 10 yen per kilogram for procurement during 16-30 September compared with 1-15 September. Secondary aluminium makers’ purchasing price seem to have become 248-255 yen per kg for printing plate scrap, 245-250 yen for new cutting sash scrap and 193-198 yen for pressed can scrap at a truck cargo including freight.Secondary aluminium makers will offer scrap dealers another price cut for procurement during 1-15 October when the makers are suffered from slow product shipment and low product price. The makers will set the upper limit at 240 yen for new cutting sash scrap and at 190 yen for pressed can scrap.Secondary aluminium makers around Osaka started price negotiation with scrap dealers in the middle of September’s 3rd week for procurement during 16-31 September. The makers aimed to decrease the purchasing price by 15 yen for high grade scrap and by 10 yen for low grade scrap.During the negotiations, primary aluminium at London Metal Exchange, the price indicator, hit the bottom since January 2008 and domestic primary aluminium price temporarily plunged down to 270-275 yen per kg without freight.Demand for secondary aluminium alloy is weakening. On the other hand, secondary aluminium makers are suffered from higher cost rate since productive costs surged for substantial materials and heavy oil.