Lower Al Scrap Price Reduction from Supply Decrease in Tokyo

Aluminium scrap dealers agreed with secondary aluminium alloy makers to decrease the scrap price by 7-10 yen to 160-165 yen per kilogram at the users’ purchase price for new cutting scrap around Tokyo for late half of August. The price decreases by 3-5 yen to 124-129 yen for foundry scrap from industrial machine and to 120-125 yen for used beverage can. The price reduction is lower than originally estimated due to the low supply.

Japanese primary aluminium ingot price decreased by around 20 yen per kilogram from the beginning of August. Secondary aluminium makers around Tokyo tried to reduce aluminium scrap purchase price by more than 10 yen for new cutting scrap and by more than 5 yen for low grade scrap including foundry scrap and UBC for late half of August.

However, the range of aluminium scrap price reduction becomes low compared with the requirement of the users while the scrap supply decreased by 10-20% compared with normal year.

The dealers reduce the scrap shipment for late August and try to build up inventory with expectation for demand increase in autumn when the users try to increase the purchase to prepare for higher secondary aluminium shipment for recovery of domestic automobile output.