The aluminum alloy and domestic aluminum scrap markets are moving higher, reflecting tightening supply and demand. Domestic production by the eight major auto manufacturers in August was up 10.1% YoY in total, and although there were still some speckles among manufacturers, production remained steady. This increase in demand, combined with high scrap prices due to thin outbreaks, is creating an outlook for higher alloy market prices. The weak yen has also given momentum to scrap exports, spurring a thin domestic outbreak of scrap, further increasing the upside potential for both markets.

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