Al Scrap Export Increasing from Tokyo to Korea

Aluminium scrap export is likely to increase from Tokyo Bay to South Korea. The export shows sign of increase mainly for used aluminium beverage can (UBC) and aluminium sash scrap. South Korean users seem to offer 5-7 yen per kilogram higher price than domestic scrap users. Several scrap dealers around Tokyo point out the offer prices are around 120 yen per kg for UBC and around 143 yen per kg for aluminium sash scrap.

About 80% of South Korea’s aluminium scrap supply depends on import, mainly from North America. But in North America, local scrap demand is increasing along high operation rate of automobile industry. Chinese secondary aluminium alloy makers also show strong appetite for North America’s aluminium scrap. Additionally aluminium scrap supply was thin in winter in North America.

Japanese alloy maker said South Korean users are facing difficulty to procure large-lot aluminium scrap from North America and shifting to Japanese scrap. Scrap dealers around Tokyo show positive stances for the export. Another supportive term is weakening yen exchange rate at 84-85 yen per US dollar from previous 75-80 yen level.