Aluminium scrap purchasing price by secondary aluminium alloy makers around Tokyo decreased by 10 yen per kilogram for high grade scrap and by 5 yen per kg for low grade scrap for local scrap dealers’ shipment in the second half of September. The purchasing price for used aluminium beverage cans was reduced by 5-10 yen per kg. The prices reflected the recent decline of primary aluminium ingot price.Primary aluminium price at London Metal Exchange was US$ 2,415 per tonne at settlement on 20 September and the telegraphic transfer selling rate was around 116-117 yen per US dollar. With these indicators, domestic primary aluminium price stays at the low level of around 290 yen per kg at dealers’ sites without freight.Scrap dealer source said current aluminium scrap generation volume is less by about 20% than the usual level in the region. One background is that scrap dealers advanced their shipment in early August with an expectation aluminium scrap price would decline after mid August. Another is that scrap generation is decreasing especially for building materials such as aluminium sash after the revision of Japanese building standards low. Secondary aluminium alloy makers hold lower material inventories and are concerned their operation might be impacted by the material shortage.As to used aluminium beverage cans, a major aluminium can recycler decreased its purchasing price by 10-15 yen per kg for the second half of September. Local secondary aluminium alloy makers were expected to follow the price down. However, in fact, the makers reduced their purchasing price only by 5-10 yen to secure enough material volume.
No related posts.