Strong Al Scrap Price in Nagoya

Aluminium scrap market price would increase from 160-170 yen per kilogram for higher grade of new cutting scrap and 135-145 yen for machine casting scrap around Nagoya.

Secondary aluminium alloy makers and scrap dealers seemed to agree to increase scrap transaction price by 3-5 yen per kg for higher grade scrap and slight increase for lower grade scrap for the purchase in first half of October. The dealers tried to increase the selling price. However, the alloy makers aimed to keep the purchase price due to the decrease in secondary aluminium price. The price seemed to remain flat excluding some lower grade scrap.

On the other hand, some dealers increase the scrap inventory expecting the price increase. Primary aluminium price at London Metal Exchange would increase from US$ 2,400 per tonne for settlement on Tuesday.

The scrap dealers plan to increase the scrap selling price by 5 yen per kg for second half of October while the alloy makers are reluctant to increase the purchase price when they suffer from alloy price decrease.