BIR updates on aluminium scrap price

According to BIR Non-Ferrous World Mirror June 2015, aluminium scrap prices in Japan have dropped by 3-5% over the last month or so in response to a weaker LME. Scrap availability remains unchanged and local secondary smelters are continuing to seek more domestic raw material. Demand for basically all aluminium grades is 'very robust' in Mexico in light of orders from new automotive plants and their suppliers, thus offering early evidence that the country's footprint as an aluminium scrap importer 'will grow significantly'.

In the Middle East, falls in LME aluminium and copper put pressure on scrap prices ahead of the holy month of Ramadan which began on June 18 and generally brings a slower period for business.

Despite the general economic well-being in the UK, the domestic scrap industry is facing difficulties. The aluminium market has been 'hardest hit', with premiums reduced from their highs of US$ 520 down to US$ 170 - effectively removing premiums for most scrap grades. In general, scrap appears to be in short supply.