Japan Aluminium Can Scrap Export Decreases in August

Japanese export of used aluminium beverage can scrap (UBC) decreased to below 900 tonnes for the first time since April 2007, which was 610.9 tonnes in August according to the trade statistics by Ministry of Finance. Most of Japanese UBC export is supposed for South Korea. Domestic UBC price continues decreasing in Japan since late August and some dealers expected UBC export for South Korea might increase more.Japanese UBC export for South Korea sharply increased since spring. The export totaled 3,873 tonnes during April-July 2007 which was 17 times as much as the corresponding period of 2006. Dealers assume UBC is used mainly as deoxidizing agent for steel making in South Korea. Japanese domestic UBC supply became tighter thanks to the increase of UBC export.Domestic UBC price surged to 190 yen per kilogram in the second half of June at makers’ purchasing price and profitability became worse at deoxidizing agent makers. However, primary aluminium price dropped down at overseas and home in the second half of August. Then UBC market price turned to downtrend. The latest price is 167-172 yen per kg.