Used Aluminium Can Scrap Price Keeps Rising in Tokyo

Used aluminium can market price keeps increasing when the price hit higher at tenders by local government around Tokyo. The price is 2-3 yen per kilogram higher for cash transaction without freight at melting makers’ purchase price before the price negotiation for first half of August. The price increases with speculation by the dealers when the scrap supply is still low level despite of the higher scrap generation while the dealers hold the inventory.

The tender price increased to 136.6 yen per kg for August-September shipment at tender by Ageo city, Saitama on Tuesday, which was around 10 yen higher than the level for June-July shipment. The tender price was 132 yen for August shipment at tender by Utsunomiya city, Tochigi on the day. The dealers try to secure the material at higher price with expectation for higher price.

The buyers of secondary alloyed aluminium makers and deioxidizing agent makers try to get the used can at around 122-123 yen per kg. However, a maker source said they cannot buy at less than 125 yen recently. The purchase price increases to around 125 yen.

Major aluminium can recyclers keep the purchase price for first half of August despite of the higher market price. The recyclers see the used can price is too high for primary aluminium ingot price and they are reluctant to purchase when they keep enough inventory.

Aluminium scrap price negotiation starts in the week to set price for first half of August. The dealers try to increase the price when offshore market increases. However, the buyers of the makers try to keep the price when primary aluminium ingot price keeps low due to higher yen rate. However, used can price could impact on the negotiation and some market sources expect the price could increase to more than 125 yen per kg.