Alloyed aluminium makers around Tokyo reached agreement with aluminium scrap dealers to keep the scrap purchase price for first half of January. The makers failed to reduce the scrap purchase cost though primary aluminium price keeps low level. The scrap supply keeps low level due to very slow building activity under confusion for new building standard law. The alloyed aluminium makers tried to reduce the scrap purchase price when primary aluminium price is as low as 280 yen per kilogram. However, the alloy demand keeps high level due to strong automobile demand while the scrap supply is limited. The alloyed aluminium makers pay as high as around 265 yen for some high grade scrap. Some dealers expect the scrap market price could decrease when scrap supply balance gets normalize. However, the slower building activity reduces the scrap supply more than usual seasonal drop. The higher scrap could suffer alloyed makers profitability with relative low selling price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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