Japan Aluminium Scrap Price Continue Increasing

Aluminium scrap market price continues increasing in Japan due to surge of primary aluminium ingot price since October. Japanese alloyed aluminium makers has increased their purchasing prices since mid October by total 14-15 yen per kilogram for high grade scrap such as printing plate and by total 7-8 yen per kg for low grade scrap such as casting for machine. The makers is currently purchasing aluminium scrap at 270-275 yen per kg for high grade scrap, at 220-225 yen per kg for casting scrap for machine and 175-185 yen for turning scrap of alloyed aluminium and soft pressed aluminium can scrap per truck load including freight.Market price of primary aluminium ingot soared up from 320 yen per kg at the beginning of October to 355 yen at the end of the month at dealers’ sites without freight in Japan. The price still keeps the level at around 355 yen at present, higher by 35 yen from early October, while primary aluminium price at London Metal Exchange is in wide fluctuation recently.Japanese alloyed aluminium makers were cautious of raising their purchase prices for aluminium scrap with expectation that primary aluminium price would decrease in near future at LME and Japanese domestic market. However, they started to increase the purchase price since mid October. Primary aluminium price is increasing more sharply at LME and aluminium scrap supply would become short seasonally in domestic market from late November to the end of February. Alloyed aluminium makers aim to secure enough scrap as soon as possible and to concentrate on price hike for their products.