31 JANUARY 2012China Aluminium Network
Aluminum scrap dealer to seek higher price in Tokyo
Edited by : AL CIRCLE
2 min read
Aluminum scrap market price shows sign to increase around Tokyo. The dealers will offer higher price to the users at talk to set the price for H1 of February when primary aluminum ingot price increases at London Metal Exchange.
The local demand is still slow and the users' appetite is low around Tokyo. A source said aluminum scrap could be oversupply in spring if the demand would keep slow.
The scrap dealers start the talk next week. A dealer said with the upward trend in aluminum market, the scrap could increase by JPY 5 per kilogram for all grades. Japanese primary aluminum ingot price increased by JPY 10 from the end of December to reflect higher LME price.
However, other scrap dealer said that the talk would result in same price level due to the slow demand. The high grade scrap demand is slow when the buyers of light metal rerollers keep the purchase volume low level. The rerollers increase import of lower priced primary aluminum.
A trading firm source said that the high grade scrap is completely buyers market when the rerollers don't need high grade scrap. The low grade scrap demand also decreases. A major alloy maker around Tokyo seeks JPY 90 per kg for alloy turning scrap which is around JPY 10 lower than current market price.
A dealer said that the low price indicate the alloy maker has no intention to purchase the scrap now. Other alloy makers also reduce the purchase volume when cheaper Chinese AD12.1 metal is available.
The local demand is still slow and the users' appetite is low around Tokyo. A source said aluminum scrap could be oversupply in spring if the demand would keep slow.
The scrap dealers start the talk next week. A dealer said with the upward trend in aluminum market, the scrap could increase by JPY 5 per kilogram for all grades. Japanese primary aluminum ingot price increased by JPY 10 from the end of December to reflect higher LME price.
However, other scrap dealer said that the talk would result in same price level due to the slow demand. The high grade scrap demand is slow when the buyers of light metal rerollers keep the purchase volume low level. The rerollers increase import of lower priced primary aluminum.
A trading firm source said that the high grade scrap is completely buyers market when the rerollers don't need high grade scrap. The low grade scrap demand also decreases. A major alloy maker around Tokyo seeks JPY 90 per kg for alloy turning scrap which is around JPY 10 lower than current market price.
A dealer said that the low price indicate the alloy maker has no intention to purchase the scrap now. Other alloy makers also reduce the purchase volume when cheaper Chinese AD12.1 metal is available.
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