Japan UBC Price Continues Weak with Slow Demand

Japanese major aluminium can recycler decided the price cut for UBC (used beverage can) purchasing by 10-15 yen per kilogram for 1-15 July compared with 16-30 June. Japanese secondary aluminium alloy makers seem to follow the price cut. UBC price continues weak since the last half of June.UBC generation is increasing entering summer while the demand from can materials is slow. The supply and demand balance is loosing. The aluminium can recycler decided the price cut for 2 half months in a row with plenty UBC inventory. Demand for RSI (re-melted scrap ingot) maintains weak. An RSI maker source said the order reception volume is decreasing by 10% year-on-year.The demand is also decreasing from secondary aluminium alloy makers. The alloy makers continue output reduction since the beginning of this year due to the stagnancy of North American auto market. During the last half of 2007, scrap generation was low and the demand for UBC was strong as a material for secondary aluminium alloy or deoxidizing agent.