Japanese Aluminium Scrap Export Keeps Steady to South Korea

Aluminium scrap export keeps steady from Japan to South Korea. South Korean importers are raising the offer price when aluminium scrap generation maintains very low worldwide. Japanese scrap dealers are actively increasing the export volume. Secondary aluminium alloy makers in South Korea continue full capacity production to follow the output expansion by Hyundai Motor.

Japanese aluminium scrap export for South Korea was 1,580 tonnes in October 2009, 1,878 tonnes in November and 2,099 tonnes in December, according to the trade statistics by Ministry of Finance. The export volume represented higher than 2,020 tonnes in March 2009 when Japanese scrap export significantly increased.

One background is South Korean importers’ high offer price while another factor is no obligation for exporting license acquisition. Japanese exporters are obliged to obtain exporting license when they ship scrap to China. For the latest applications, ISO9001 acquisition is also required in the case of scrap trading with Chinese importers.

Exporting cost for South Korea is generally said at CIF 160,000 yen per container. Japanese trader source said one container can load aluminium scrap at maximum 22-23 tonnes. This suggests the exporting cost is about 7 yen per kilogram of scrap.

Japanese export price of pressed aluminium can scrap for South Korea was around CIF 140 yen per kg in mid January. The price equaled to around 133 yen per kg at scrap dealers’ sites without freight, almost as same as domestic secondary aluminium alloy makers’ purchasing price.

South Korean importers’ offers are expected to increase again after Chinese New Year holidays, said Japanese scrap dealer.