Al Scrap Dealers in Strong Selling Stance under Tight Supply, Tokyo

Price negotiations are almost concluding between secondary aluminium alloy makers and aluminium scrap dealers for July 16-31 shipment around Tokyo. Scrap price is likely to be set unchanged from July 1-15. However, scrap supply maintains seriously tight especially for low grade scrap and one major alloy maker said they must pay 1-2 yen per kilogram additionally to secure enough volume of scrap. Several alloy makers may approve slight price up.

Aluminium scrap consumption is relatively steady in response to secondary aluminium alloy makers’ operations. Meanwhile, scrap supply maintains tight especially for sash scrap, casted aluminium machine scrap or alloy turning scrap. Scrap collectors are recently withholding their inventories though scrap generation keeps inactive in domestic market.

Scrap dealers are strengthening their selling stances. One large dealer said they intend to withhold scrap inventories if they feel the users’ offer price is low. Most scrap dealers tend to increase shipment to secondary aluminium alloy makers before Japanese summer holidays in mid August every year. However, scrap dealers are in wait-and-see mood when scrap market price currently seems at the bottom level, said a trader source.