Aluminium Can Scrap Price Continues Increasing in Tokyo

The market price of used aluminium beverage can scrap (UBC) is gradually increasing around Tokyo in November. UBC demand is increasing for deoxidizing agent and secondary aluminium alloy entering the season when aluminium scrap generation decreases. Shinryo Aluminum Techno, Japanese major aluminium recycler and a subsidiary of Universal Can Corporation, raised the UBC purchasing price by 7 yen per kilogram for the first half of November under the supply tightness.Shinryo Aluminum Techno set the UBC purchasing price unchanged through October when overseas primary aluminium market was weak. On the other hand, Japanese secondary aluminium alloy makers raised their purchasing prices by more than 5 yen per kg in October for both high-grade and low-grade aluminium scrap to keep high operations and procure enough materials. The secondary aluminium alloy makers’ UBC purchasing price became above 180 yen per kg at the highest which hit 189 yen at a public bid tender.Secondary aluminium makers’ UBC purchasing price exceeded Shinryo Aluminum Techno’s price and UBC procurement volume decreased at Shinryo Aluminum Techno in October as a result. UBC generation volume is expected to decrease toward winter. Shinryo Aluminum Techno raised the purchasing price for November to secure enough materials.Domestic price of primary aluminium is increasing to around 307 yen per kg. UBC market price is expected to maintain strong as long as the supply is tight and overseas primary aluminium market keeps steady.