Aluminum can reproducing business makes loss
Aluminum can reproducing has been a money-losing business because of the low sales prices and the increases of used aluminum can (UBC) markets. Aluminum can reproducers plan to cut UBC purchase prices when the used can price seems to increase more because of fewer generation in cooler summer. Selling price of recycled can is unlikely to increase when index domestic primary aluminum price and premium seems to decrease.

The premium price to Japan at the fourth quarter is estimated to fall to $40-$50 according to major trading company from $67-$68 of third quarter because domestic aluminum ingot demands begin to decrease.

In addition, backwardation, which has pushed up production sales prices, is dissolving, and it is accelerating below cost of aluminum can reproducing business.

On the other hand, UBC market has increased to about 120 yen, over 110 yen of profitable line of business for aluminum can reproducers because amount of emergence of aluminum can has decreased due to cold summer.

Drinking can shipments in August dip from predicted figures, and supply and demand will be tight. In addition, at the tenders for UBC held by partial local governments, contract price was 127 yen, and the price will be indicator of UBC market.