Major secondary aluminium alloy makers and automotive component makers around Tokyo almost agreed to leave unchanged or to slightly decrease by 1-3 yen per kilogram for secondary aluminium alloy for September 16-30 shipment. Relatively high prices were adjusted downward to reflect market price decrease in primary aluminium and aluminium scrap.Japanese primary aluminium market price hit the yearly lowest at 180-190 yen per kg in September when offshore primary aluminium market price dropped and yen exchange rate maintained extremely high. Aluminium scrap market price decreased in early-mid September and the price is likely to decrease more in the first half of October. Moreover, AD12.1 grade alloy import is remarkably increasing from China at low price of 200-250 yen per kg. With these factors, domestic alloy makers failed to raise the selling price after tough negotiations. High prices were adjusted slightly downward and low prices were unchanged. Alloy selling price is estimated to decrease significantly for October shipment. One factor is that successful bid price represented low alloy price at tender held by a large-lot user for October-December shipment. Meanwhile, alloy makers’ aluminium scrap purchasing price would decrease by 5-10 yen for October 1-15. Additionally AD12.1 grade alloy import from China seems to increase under strong yen trend. The import exceeded 40,000 tonnes in August. Japanese trader source sees the import was likely to represent even higher volume in September and high volume arrivals are expected to continue in October.
Japan Steel Scrap Composite Prices (Sangyo Press)09/28/2023
|50400YEN (-)||52000YEN (-)|
|334.55US$ (-1.27)||345.17US$ (-1.31)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)