UBC Bid Prices Slightly Up-Down at Local Government Tenders around Tokyo

Used aluminium beverage can (UBC) scrap price slightly fluctuated at the latest tenders held by local governments around Tokyo. The highest successful bid price hit 140 yen per kilogram at a tender in Yokohama City, slightly increasing from the previous tender, while the bid prices maintained flat or slightly downed at other tenders. The bidders aimed to procure UBC for regular delivery quota to contract UBC users, UBC export to South Korea, or inventory increase before the tight supply in cold season.

The successful bid prices were 137-140 yen per kg at a tender held by Yokohama City for August delivery. The price increased by 2-3 yen compared with the previous tender held in late May for July delivery. Several concerned sources pointed out the bidders participated in the tender for regular UBC delivery quota to deoxidizing pellet makers.

At other tenders for July-September delivery, the successful bid prices were 133-138 yen around Tokyo, 134-138 yen in North Japan local governments, and 130-135 yen in Kyusyu area. Some of the bidders seem to secure UBC inventory with an expectation for the market price upsurge in the cold season when UBC generation decreases. Some of the bidders were said to purchase UBC for the export to South Korea.

UBC supply is currently increasing in the market. Some of the dealers are increasing UBC shipment with a concern on the market price down. Meanwhile, some of the dealers seem to be releasing UBC inventories procured a year ago. UBC sales offers are increasing for RSI (re-melted aluminium can scrap ingot) makers and deoxidizing agent makers.