Market price of UBC (used beverage can) is lowering by 10 yen per kilogram around Tokyo. Local secondary aluminium alloy makers currently purchase UBC at around 135 yen per kg. Scrap dealers and alloy makers are concluding price negotiations for May 16-31 shipment. A trader source said the price is likely to lower by 10 yen after previous price down for May 1-15 shipment.
Local scrap dealers decrease shipment of high price inventories when alloy makers are lowering UBC purchase price. Especially the dealers, those who procured UBC for April-June delivery at around 146-150 yen per kg at local governments’ tenders, are said to hold the inventories until January-February 2011 when UBC supply is expected to tighten. Domestic UBC demand is stagnant. The demand is totally weak from RSI (re-melted aluminium can scrap ingot) makers. Deoxidizing agent makers continue full operations and show active purchasing stances but, one of the agent makers said, material inventory isn’t short and they select reasonable offer price. UBC generation is increasing due to the seasonal factor. Supply and demand balance would loosen more and the market price is likely to edge down.Japan Steel Scrap Composite Prices (Sangyo Press)
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