JAPANESE end of year Aluminum Scrap Market Slacken
2013/12/25The aluminum scrap market that continued an ultra tight condition (about Tokai district aluminum alloy maker), has been finally beginning to come out by stock selling in the end of year, after entering December. According to Tokai district aluminum alloy maker, “The outcome in November was very bad. It was a 20〜30% decrease compared to October, but after entering December, quality goods began to appear.” Among all of reasons, annually, it’s the effect of so many appearances of advertisement from December to January, or the increase of printing plates’ distribution. This year, was it especially the Abenomics effect, that it is said, “twice of annual result is coming in” (Nagoya district aluminium alloy maker).
However, it doesn’t mean that it became as loose as to reduce the scrap unit price, and as described above, it’s just relaxed from an “ultra tight” condition, but still in high tight condition. Turning is \140/kg even if it’s the mix, while UBC is \145 in storage and some parts of major alloy maker’s high purchasing is continuing. Domestic base metal is also sticking with high price of \210〜213/kg. About this, there are also voices pointing out, “There is value difference between hot aluminum and cold material,” and it is heard, too, that now, by the difference between cold material and hot aluminum is ADC12-based and widening value difference of \15/kg or more (hot aluminum is in high price), then the base metal market won’t be decreased. Russian lump of imports remained at $2,050/tonne. In these few months, dollar unit price isn’t changing. The CIF price calculated at \103 is exchanged to \221/kg. Chinese ADC12 is $2,140, while the CIF price is \231/kg.
Now, the car that continues the production increase by the last-minute rush supply and demand, before the tax increase, but because there is lack of clarity in supply and demand of cars after March, and in production, so alloy makers are wary in the future. Even if the trading company had been securing the Chinese ADC12 imports until February, for March and after that is cautious, and it’s the same as cars maker.
It is roughly decided that the ADC12 quarter price of January-March is centered at range \225〜228/kg (cold material). It will not reach the expected \235. It’s only that, as mentioned above, there is also hot aluminum that is taking the higher value of \15〜20 from cold material, and the cold material makers are grinding their teeth, including the resentment of envying that, “it is one winner state of hot aluminum.” I want to explain about this matter separately.
The current purchase price of aluminum alloy makers are as follows :
Yen / maker’s bottom price based per kg
2S new cutting・・・・・・・・・178〜183
printing plate ・・・・・・・・・ 180〜185
63 grade sash・・・・・・・・・ 173〜178
52 grade alloy・・・・・・・・・ 165〜170
screw included sash・・・・・・ 150〜155
aluminum bronze radiator・・・・ 310〜315
base metal・・・・・・・・・・ 210〜215
engine casting・・・・・・・・・ 165〜170
new machinery casting・・・・・ 170〜175
machinery casting・・・・・・・ 155〜160
aluminum foil・・・・・・・・・ 180〜188
turning mix・・・・・・・・・・ 135〜145
casting turning・・・・・・・・ 145〜150