Aluminium Scrap Market Price Sharply Lowers by 5-10 Yen/kg, Tokyo

Aluminium scrap dealers around Tokyo are speedily lowering their scrap purchasing prices by 5-10 yen per kilogram this week. The main factor is that primary aluminium ingot market price in domestic market has decreased by 10 yen or more since late September to reflect drop down of overseas primary aluminium market price and extremely strong yen exchange rate. Local secondary aluminium alloy makers show an intention to decrease their aluminium scrap purchasing price largely for October 1-15 procurement.

Primary aluminium price at London Metal Exchange continued to decline since mid September and the settlement currently hit below US$ 2,200 per tonne, the lowest price in the latest year. Aluminium scrap dealers around Tokyo moved to lower their scrap purchasing price largely this month though they had kept the price unchanged.

Major secondary aluminium alloy makers indicate large-range price down for aluminium scrap procurement for October 1-15. One concerned source of a major alloy maker said they are willing to decrease the purchasing price by 15-20 yen per kg for high grade scrap and by more than 10 yen per kg for used beverage can (UBC) and low grade scrap.

However, most sources forecast actual price down range would be 10 yen for high grade scrap and UBC while 5 yen for low grade scrap since scrap dealers cannot cover too steep price down. Then secondary aluminium alloy makers may offer additional price down for October 16-31 delivery.