The outlook for both the domestic aluminum alloy and aluminum scrap markets has grown increasingly pessimistic. Although the rapid appreciation of the yen has paused, and the LME (London Metal Exchange) spot price, which serves as a benchmark for scrap, has rebounded by around $130 per ton from its recent low by the end of last week, the outlook remains somewhat uncertain. Despite a potential slight adjustment in the market view, the price of scrap, which had been adjusted before the Obon holiday, has decreased by 15-25 yen per kilogram compared to early August. The decline in imported ingot prices, triggered by weak demand from China and the strong yen trend, has shaken the domestic ADC (Aluminum Die Casting) market, and this trend has also impacted the scrap market, likely leading to further price declines.
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