Used aluminium beverage can (UBC) market price is estimated to decrease by 10 yen per kilogram or more around Tokyo for the first half of October. On the other hand, successful bid prices at latest UBC tenders held by local governments around Tokyo represented above 125 yen per kg in some cases. Bid prices are higher than the market price due to speculative bidding and local scrap dealers are concerned on negative influences of speculative bidding.UBC market price is likely to reduce in early October when primary aluminium price at London Metal Exchange dropped down and yen exchange rate maintains extremely strong against other currencies. UBC users such as secondary aluminium alloy makers say they are willing to lower UBC purchasing price to 115 yen per kg or less including freight in October from present 125 yen. On the contrary, successful bid prices at latest UBC tenders held by local governments for October-December and October-March represented much higher than current UBC market price. It seems that bidders offer prices as high as 125-130 yen to hold UBC inventories for speculative purpose. UBC and re-melted scrap ingot (RSI) users are decreasing high-cost material usage when UBC market price stays high. Actually Japanese aluminium re-rollers are reducing RSI consumption in September while they are increasing primary aluminium ingot consumption to produce can materials. However, some of scrap dealers and other UBC collectors such as industrial waste disposers or paper recyclers haven’t recognized UBC and RSI users change the mind. As a result, speculative biddings continue to emerge at local governments’ UBC tenders.
Japan Steel Scrap Composite Prices (Sangyo Press)09/28/2023
|50400YEN (-)||52000YEN (-)|
|334.55US$ (-1.27)||345.17US$ (-1.31)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)