Strong UBC Demand for Steel in Osaka

Used beverage can shipment is increasing for deoxidizing agent around Osaka. The agent makers pay 132-138 yen per kilogram for UBC, which is higher than other aluminium refiners under firm demand for steel making. Deoxidizer makers try to secure UBC while secondary aluminium ingot makers reduce UBC purchase under slower automobile output and major aluminium can material makers hold excess inventory.

The market price is flat at 122-127 yen per kg at aluminium refiners’ purchase price including freight around Tokyo. The users reduced UBC purchase price by around 5 yen for late May due to lower primary aluminium ingot price. UBC shipment slows due to weak domestic demand and the largest users, re-melted can scrap ingot makers would reduce the purchase more.

Some of the scrap dealers try to increase UBC export to South Korea. South Korean users’ purchase price is around 10 year higher than Japanese under firm automobile output, according to an exporter.