UBC Market Price Keeps Flat in Tokyo

Market price of UBC (used beverage can) keeps flat around Tokyo. Local secondary aluminium alloy makers are purchasing UBC at around 198-203 yen per kilogram in cash without freight.Aluminium can recyclers are increasing UBC procurement entering demand season for beverage cans. On the other hand, demand for UBC keeps strong from secondary aluminium alloy and deoxidizing agent. UBC supply maintains tight. At governmental bids for UBC, the highest contract price exceeded 220 yen per kg for April-June shipment.Japanese major aluminium can recycler raised the UBC purchasing price by 10-15 yen per kg for shipment during 1-15 April because UBC arrivals were less in March. Following this hike, most secondary aluminium alloy makers set their purchasing price for UBC unchanged for 1-15 April while decreased the purchasing price for other aluminium scrap.Alloy makers seem to be suffered from worse profitability again with higher UBC cost and lower RSI (re-melted scrap ingot) selling price. A source said RSI makers might reduce their output to improve profitability.