Secondary Aluminium Base Metal Price in Uptrend, Tokyo

The market price of base metal for secondary aluminium (ADC10 grade) represents uptrend around Tokyo. Local secondary aluminium alloy makers currently pay 190 yen per kilogram for base metal in cash without freight. The price is pulled up by the strong tone in offshore primary aluminium market and the increasing domestic demand for base metal.

A major base metal maker around Tokyo said engine scrap market price surged by 4-5 yen per kg from last week, which is one of main materials for base metal. Engine scrap price is surging when aluminium and ferrous scrap prices stay high while scrap supply is tight.

Base metal makers will start price negotiations for March 16-31shipment with the users next week. The price is expected to increase. Russian base metal AK5M2 price, one of the indicator, is presently surging to around CIF US$ 2,200 per tonne to reflect the supply tightness.

Secondary aluminium alloy makers around Tokyo are willing to raise base metal procurement when the makers are increasing ingot productions in March. Meanwhile, aluminium scrap generation maintains stagnant in Japan and at overseas. A major alloy maker said they want to increase base metal procurement when aluminium scrap market price keeps high due to the supply tightness.