Japan Used Beverage Can Export Rises to South Korea

Japanese export of used beverage can is likely to increase to South Korea after the sharp rise since the spring. The export increased to around 17 times at 3,873 tonnes in April-July from same period of 2006. The domestic market price could keep the high level under the tight supply. Japanese aluminium scrap export, of which used beverage can represents large portion, increased to around 19 times at 994.6 tonnes for South Korea in July from a year earlier, according to Ministry of Finance. Used beverage can was apparently used mainly as steel deoxidizer in South Korea. The material is also used as material for secondary alloyed aluminium. Japanese used beverage can was oversupply after Showa Denko’s subsidiary closed the part of secondary alloyed aluminium plant, which used monthly 1,000 tonnes of used beverage can. The lower demand pressured on the market price. Japanese used beverage can export unit price is around CIF 195 yen per kilogram for South Korea. The price without freight is around 10 yen higher than purchase price by Japanese makers. Major Japanese can makers reduced the purchase price of used beverage can by 5-8 yen per kg in September to reflect lower primary aluminium ingot. Domestic secondary alloyed aluminium makers also could reduce the price. However, the lower price could increase the export to South Korea reducing the domestic supply.