Japan Secondary Al Alloy Makers Cut Scrap Price by 5-10 Yen/kg

Secondary aluminium alloy makers around Tokyo decreased their purchasing price by about 10 yen per kilogram for high grade aluminium scrap and by about 5 yen per kg for low grade aluminium scrap as of shipment during 16-31 August. The price was reduced when overseas and domestic primary aluminium market plunged down.Primary aluminium future price at London Metal Exchange declined to below US$ 2,800 per tonne during the 3rd week of August. Japanese domestic price of primary aluminium ingot became to 310-320 yen per kg without freight, which dropped down by about 60 yen from the peak in July.Secondary aluminium alloy makers offered price cut of aluminium scrap by more than 10 yen per kg for 16-31 August shipment to follow primary aluminium market. However, scrap dealers strongly resisted against the offer since they approved price cut in June when alloy makers were suffered from low selling price of secondary aluminium alloy, though primary aluminium market was strong in June. The price cut range was narrowed for 16-31 August as a result.Demand for aluminium scrap seems relatively weak in domestic market while strong from overseas. Japanese export of aluminium sash scrap continues bound for South Korea and Vietnam at least 100-200 tonnes per month. Japanese secondary aluminium alloy makers are reducing their production and scrap procurement is weakening.