UBC Price Declines to Reflect Easier Supply, Japan

The market price of used beverage can (UBC) is declining in Japan due to easier supply and demand balance. A major aluminium can recycler decreased the UBC purchasing price by 5-10 yen per kilogram for 16-30 June compared with 1-15 June. Other secondary aluminium alloy makers also decreased their UBC purchasing prices by about 5 yen per kg for 16-30 June. The price seems at around 195-200 yen per kg currently. UBC price stayed at the rather high level since this spring.UBC generation is gradually increasing toward summer. The supply becomes easier. The demand is also declining from secondary aluminium alloy makers. The alloy makers have reduced their output since April 2008 due to the stagnant automobile market in North America. Demand for RSI (re-melted scrap ingot) is also weakening. An alloy maker source said the orders for RSI are recently decreasing by about 10% year-on-year.The alloy makers hold enough UBC inventories. UBC price would decrease more for 1-15 July. UBC price stayed at the high level since this spring. A major aluminium can recycler raised the UBC purchasing price by 15 yen per kg in April when UBC supply was tight. The bid price at public tenders for April-June 2008 temporarily soared to 225-230 yen per kg.