Al Scrap Market Price Drops by 4-8 Yen/kg in Osaka

Aluminium scrap market price decreased by 4-8 yen per kilogram around Osaka at the purchasing price by local secondary aluminium alloy makers for shipment for first half of December. The main factor was price down of primary aluminium ingot. Additionally, supply and demand balance of aluminium scrap is easing. Some of the alloy makers seem to hold excess material inventories or suffer from low operation rate.

Local secondary aluminium alloy makers purchase new cutting aluminium scrap at 150-160 yen per kg, single-composite aluminium alloy scrap at 133-143 yen, casted aluminium machine scrap at 122-132 yen, aluminium sash scrap at 125-135 yen and used aluminium beverage can (UBC) at 105-113 yen per kg for first half of December including freight.

Primary aluminium ingot spot price at London Metal Exchange significantly decreased in November. The price decreased to less than US$ 2,000 per tonne and hit the yearly lowest. Japanese aluminium re-rollers’ breakeven point with imported primary ingot seems to have decreased by 13 yen to 183 yen per kg at the end of November compared with the beginning of the month along the offshore indicator.

High grade aluminium scrap price decreased by 8 yen to reflect large price down of primary aluminium. Low grade scrap price decreased by 4 yen along primary aluminium price down and the weak demand from secondary aluminium alloy makers. UBC price also decreased by 5 yen. Operation rate has slowed down at some of local secondary aluminium alloy makers though the production was active since June.

One alloy maker seems to have offered 115 yen for aluminium sash scrap currently. There are gaps between offer prices of alloy makers and aluminium scrap dealers. One scrap dealer explained local alloy makers show weak appetite for new material procurement.