UBC Market Price Keeps Flat in Weak Tone, Tokyo and Osaka

Japanese market price of aluminium UBC (used beverage can scrap) keeps flat with potential decrease. Secondary aluminium alloy makers purchase UBC at around 122-127 yen per kilogram in Tokyo while alloy makers in Osaka pay 128-135 yen per kg.

Around Tokyo, secondary aluminium alloy makers and scrap dealers almost agreed in price unchanging for UBC shipment for June 1-15. Meanwhile, there seems some trading at 130-140 yen among dealers and price bid held by local governments. Around Osaka, alloy makers and scrap dealers are still in price negotiations for June 1-15 while the price is likely to be set almost unchanged.

RSI (re-melted scrap ingot) makers’ demand is weak for UBC, which accounts for more than 60% of market total UBC consumption. Aluminium re-rollers are recently increasing utilization of primary aluminium rather than UBC. Thus secondary aluminium alloy makers in East Japan are largely decreasing UBC production.

In West Japan, UBC price was relatively high between scrap dealers and deoxidizing agent makers. However, the price is currently declining by 1-3 yen per kg to the level as low as secondary aluminium makers’ purchasing price. One deoxidizing agent maker around Osaka said they are willing to lower the purchasing price more for June 16-30 procurement.