Alloyed Al Makers Cut Scrap Purchase Price in Tokyo

Alloyed aluminium makers around Tokyo concluded the price negotiation with local scrap dealers to decrease the purchase price by 30 yen per kilogram both for high and low grade scrap for second half of October. The price decreases to 195-200 yen for new cutting scrap and 197-202 yen for printing plate.

Local aluminium scrap price decreases by total 50 yen per kg in October when local aluminium makers reduce the consumption under slower demand. A dealer source said the makers reduce the scrap inventory by stopping the new purchase.

Lower aluminium ingot price also impacts on the scrap market when future price decreased to less than US$ 2,300 per tonne at London Metal Exchange, which is the lowest level since December 2005. Japanese primary ingot price also decreased to 220 yen per kg, which is more than 70 yen lower than recent peak in mid-September.

The dealers are suffered from the slow market. They get more scrap arrivals from the market at lower price while the makers’ purchase price cut is wider than the dealers’ purchase price decrease. The slower demand could pressure on the aluminium and the scrap market.