Aluminium Scrap Price Rises by 10 Yen/kg in Osaka

Aluminium scrap market price increased by around 10 yen per kilogram for sash scrap and machinery castings scrap around Osaka when the scrap export price increases for China. However, a major scrap dealer sees the local demand around Osaka is still very low level due to minimum purchase by the major buyers including secondary aluminium ingot makers and rolled aluminium makers.

The dealers only for domestic sales have trouble to secure the materials at reasonable cost when the scrap market price increases despite of the sales slump in the domestic market.

The scrap export to China reached around 10,000 tonnes in February after the export started to increase in January when domestic alloy makers stopped the scrap purchase. The export is estimated to increase more in March and the export price hit 85-95 yen per kg for sash and more than 100 yen for machinery castings. The domestic scrap supply gets tighter mainly for exported materials due to the higher export.

The scrap price increases is also partly due to higher primary aluminium ingot price. The primary ingot price increased by 30% to more than 150 yen per kg at dealers’ site for cash transaction from recent bottom of 122 yen per kg in January. Local rolled aluminium makers increased the sash scrap purchase price to 118 yen, which is around 20 yen higher the level in late March. Local alloy makers also increased the scrap purchase price to 95-100 yen for new cutting and sash scrap while the purchase price was less than 85 yen before.

However, a major scrap dealer sees the demand is still very slow despite of the major buyers’ purchase price increase. The dealer said the buyers could keep minimum purchase while the scrap market is confused when the price is same level for various grades.