Japan Aluminium Scrap Market Rises

Aluminium scrap market price shows sign to rebound. Alloyed aluminium makers already increased the purchase price for high grade scrap including printing plate around Osaka under surging primary ingot price in mid-January though Osaka based major 2 makers stopped to buy the scrap in January due to account end period. The scrap market price is expected to increase by 3-5 yen per kilogram mainly for high grade items around Nagoya though the mood is cooler around Tokyo compared with Nagoya and Osaka. Alloyed aluminium makers start price negotiation in the week with scrap dealers for purchase price in first half of February. Some makers are said to be cautious for higher price when aluminium ingot price could stay the level at London Metal Exchange after the plunge on Friday. However, Osaka based alloyed aluminium makers increased the scrap purchase price by 5-10 yen per kg actually in late January. They pay 290 yen for printing plate, 285 yen for new cutting and 63 grade sash, 225-235 yen for machinery casting, 180-190 yen for turning alloy scrap and 187-193 yen for aluminium can scrap including freight for truck load. The market is still calm around Tokyo when the scrap arrival is better than usual due to warmer winter and the scrap dealers have sufficient stock due to lower production rate of Nissan Motor. The alloyed aluminium makers around Tokyo pay 5 yen per kg lower than Osaka market. With the increase in other areas, the purchase price is expected to increase by 5 yen for high grade scrap around Tokyo.