Japanese RSI and Deoxidizing Agent Makers Suffered from High UBC Price

Japanese RSI (re-melted aluminium can scrap ingot) makers and deoxidizing agent makers are suffered from serious upsurge of UBC (used aluminium beverage can) market price. UBC is the main material for RSI makers and deoxidizing agent makers. UBC market price has recently jumped up while the selling price of RSI and deoxidizing agent levels off. Their profitability is seriously worsening.

UBC market price has surged by 20 yen per kilogram within a month. The users’ UBC purchasing price is around 145-148 yen per kg for the shipment on April 1st-15th without freight. Aluminium scrap generation maintains very stagnant while UBC generation keeps relatively steady. Then the market price is highly jumping.

RSI makers’ ingot selling price is decided along the fluctuation of primary aluminium ingot price. UBC market price is rising by the even wider range than primary aluminium market price. RSI makers cannot reflect high material cost on the selling price.

Profitability is also worsening for deoxidizing agent makers, especially for the pellet makers those who consume only UBC as a material. The selling price of deoxidizing agents is set unchanged for a month or 3 months in most price systems. The agent makers must continue operations to keep the stable supply for integrated steel makers even though material costs jump up and exceeded the breakeven point.