Japanese secondary aluminium alloy makers aim to decrease their purchasing prices for aluminium scrap shipping in the second half of June. The alloy makers offer the price cut against scrap dealers for the first time in late 3 months to reflect the plunge down of domestic primary aluminum ingot price. The price is expected to down by 5-7 yen per kilogram for high grade scrap and by 3-5 yen per kg for low grade scrap.
Primary aluminium price at London Metal Exchange maintains weak since the settlement price became lower than US$ 2,700 per tonne last week which was the lowest level in 3 months. Japanese domestic price for primary aluminium ingot downed by about 10 yen to 365-370 yen per kg for trading in the first half of June compared with the second half of May. Domestic secondary aluminium alloy makers and aluminium scrap dealers already expected the alloy makers’ scrap purchasing price would decline for shipment in the second half of June. Some alloy makers offer the price down by 10 yen per kg for high grade scrap and by 5 yen per kg for high grade scrap. Aluminium scrap dealers are unwilling to accept wide price down because they could not raise the scrap selling price enough in May. However, scrap arrivals became active in the first half of June and the secondary alloy makers have sufficient material inventories. Scrap dealers cannot show strong selling stances then.Japan Steel Scrap Composite Prices (Sangyo Press)
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