Secondary aluminium alloy makers around Nagoya are likely to raise their purchasing price for aluminium scrap by 10 yen per kilogram for high grade scrap and by 5 yen per kg for low grade scrap for January procurement. Primary aluminium price at London Metal Exchange (LME), the price indicator, stays at the high level, which temporarily exceeded US$ 2,500 per tonne.
Meanwhile, secondary aluminium alloy makers are suffered from low selling price of alloy products. Besides material inventory level differs among alloy makers. Thus the price hike range will vary by each alloy maker. Especially for low grade scrap, the hike range may become narrower than 5 yen. However, scrap dealers may shift to export if alloy makers offer too low prices. Alloy makers are cautiously seeking the agreeable price level. Around Tokyo, secondary aluminium alloy makers presently purchase new cutting aluminium scrap at around 160-165 yen per kg and printing board scrap at around 162-167 yen per kg. Local alloy makers and scrap dealers are talking on scrap prices for January 1-15 shipment. Most scrap dealers suppose alloy makers would raise the price by 3-5 yen for high grade scrap while set the price unchanged for low grade scrap since alloy makers are suffered from low selling price of alloy products. Meanwhile, one scrap dealer said they must request price hike for all scrap items for January 16-31 shipment if LME price keeps the current high level. Market demand for secondary aluminium alloy is expected maintain stable for January-March. Alloy makers continuously show active stances for material procurement.Japan Steel Scrap Composite Prices (Sangyo Press)
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