Used beverage aluminium can price increased to higher level than expected around Tokyo. The successful bids reached more than 95 yen per kilogram at tenders by cities and local governments for July-September period. The price is around 10 yen higher than local makers’ purchase price. Industry source estimates the higher price is due to speculative purchase by the dealers.
The dealers apparently expect the market price would increase in the winter due to seasonal lower supply. Such dealers’ speculative purchase supports the tenders’ results. The used can supply keeps relative high level while many dealers try to build the inventory since the beginning of the year. Secondary alloyed aluminium makers and deoxidizing agent makers participate in such tender through the dealers and trading firms while many makers pass on the tender when the operations is very low level. The makers expect they can purchase used can anytime to meet the lower level of requirement, even skip the tenders.Japan Steel Scrap Composite Prices (Sangyo Press)
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