RSI and Deoxidizer Makers Show Weak Demand for UBC, Tokyo

Market demand keeps inactive for UBC (used aluminium beverage can) around Tokyo. Aluminium can recyclers are reducing UBC procurement due to the high market price. Deoxidizing agent makers also show weak appetite for UBC when the makers are under low operations. The makers’ current UBC purchasing price is 108-110 yen per kilogram including freight.

Major RSI (re-melted aluminium can scrap ingot) makers around Tokyo continue low volume procurement of UBC. The makers’ willing price level is 101-102 yen in balance with recent primary aluminium market price.

Additionally RSI makers are suffered from the order decrease from primary aluminium re-rollers. One RSI maker source said the re-rollers are reducing RSI utilization while increasing primary aluminium consumption. As a result, the RSI maker’s order receipt volume is 20-30% lower than usual years.

Deoxidizing agent makers are also reducing UBC procurement. One major agent maker said their operating rate is expected to recover to around 70% in May and around 80% in June. Their material inventory is sufficient at present, said the source.

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