Aluminium Scrap Price Downs Widely in 2H of August

Scrap dealers around Tokyo are likely to agree with secondary aluminium alloy makers to decrease their aluminium scrap selling price by 20-25 yen per kilogram for high grade scrap and by 10-15 yen per kg for low grade scrap for shipment in the second half of August. Aluminium scrap price will decrease widely within this month to reflect the decline of primary aluminium price.Primary aluminium settlement at London Metal Exchange rebounded slightly to US$ 2,441.5 per tonne on Wednesday from Tuesday, though which still stayed below US$ 2,500. Japanese domestic price for primary aluminium is 315-320 yen per kg at present, down by more than 40 yen compared with the second half of July.Scrap dealers expected their selling price might decline by 10 yen per kg for high grade and by 5 yen per kg for low grade. However, the actual price seems to decrease more than expected when primary aluminium price weakened to the lowest since June 2006. On the other hand, the selling price would decrease by only 10 yen per kg for aluminium can scrap and aluminium alloy turning scrap due to less generation volume.