Aluminium Scrap Market Price Slightly Drops in Tokyo

Aluminium scrap dealers and secondary aluminium alloy makers around Tokyo almost agreed in slight price down for high grade aluminium scrap and used aluminium beverage can (UBC) for first half of May order. Low grade scrap prices were unchanged from the second half of April. The alloy makers’ purchasing prices became 148-153 yen per kilogram for 63S grade aluminium turning scrap, 128-133 yen per kg for aluminium sash scrap, 102-107 yen per kg for aluminium alloy turning scrap and 103-108 yen per kg for UBC without freight.

Major alloy makers offered price cut for all aluminium scrap items against the dealers those who had decreased the selling prices only slightly in mid-late April. The dealers approved the price cut offers when overseas primary aluminium market price, the indicator, weakened and yen exchange rate strengthened against US dollar. Low grade aluminium scrap prices were unchanged to reflect small amount of scrap generation from manufacturing industry.

Secondary aluminium alloy makers keep stable procurement of aluminium scrap. Meanwhile, one scrap trader pointed out the orders are weak for alloy turning scrap. Production of AD12.1 grade alloy is slow at domestic makers since cheaper alloy inflow has recently increased from China. Despite of the slow orders, the supply and demand are balanced due to low amount of scrap generation.

Sash scrap shipment is steady. Large traders show strong appetite for sash scrap to process the scrap and sell the processed scrap to aluminium re-rollers as high grade material. The demand is also stable from scrap exporters, mainly to South Korea, said a major scrap dealer source.