Secondary Al Alloy Makers Pay 7-8 yen/kg More for Al Scrap

Secondary aluminium alloy makers and aluminium scrap dealers around Tokyo agreed in price hike for high grade aluminium scrap by 7-8 yen per kilogram and low grade scrap by around 5 yen per kg effective for shipment in the last half of February. Aluminium scrap price was raised when primary aluminium price hit the highest in late 7 months. Another factor was scrap supply tightness.Secondary aluminium alloy makers offered to raise their purchasing price by 5 yen per kg for high grade aluminium scrap and by 3 yen per kg for low grade scrap. Scrap dealers offered price hike by 10 yen per kg for high grade and by more than 5 yen per kg for low grade. Alloy makers approved dealers’ offer when aluminium scrap supply maintained tight and primary aluminium market continued soaring at overseas.Primary aluminium at London Metal Exchange was US$ 2,903 per tonne at 3-month future price on 21 February, the highest level since April 2007. In Japanese market, primary aluminium ingot price jumped up to 320-325 yen per kg along upsurge of overseas market, which rose by more than 50 yen from the recent bottom in late January.