Japan Slow Demand Encourage Al Scrap Export

Japanese exporters try to increase aluminium scrap export to China and South Korea when the domestic demand is still slow. The export increases for sash with screw, machinery casting scrap and used beverage can. The export shift could be accelerated when the domestic demand is expected to keep slow.

Aluminium scrap dealers around Tokyo reported Chinese and South Korean buyers increase the order since December 2010 when secondary aluminium alloy market price surges and aluminium scrap price keeps high in the countries. The offshore buyers keep the appetite for Japanese scrap.

South Korean buyers bid was 130 yen per kilogram for used beverage can in early January, according to the dealers. The price is not so high now after domestic buyers increased the purchase price by 2-3 yen to 127-128 yen for second half of January. However, some dealers around northern part of Japan prefer to export due to the lower freight cost than the cost to Tokyo area.

Japanese export price is 135-140 yen per kg for sash with screw for South Koran buyers. The price is much higher than 132-133 yen of domestic buyers’ purchase price, according to Japanese dealer source.

Japanese major aluminium scrap buyers increased the purchase price by 5 yen per kg for higher grade scrap and kept the price for lower grade scrap in January while primary aluminium ingot price increases. The buyers of secondary alloyed aluminium makers try to minimize the raw materials cost under the slow demand for the products partly due to higher alloy import.