Aluminum Can Scrap to Decline around Tokyo

Aluminium used beverage can scrap price would decline around Tokyo. The scrap generation increase due to the seasonal influence while scrap demand is at low level. The oversupply would cause the price decline.

AUBC scrap generation increasing when the canned beverage demand increase in summer. On the other hand, the dealers apparently release the scrap, which has stocked since the beginning of year, according to the dealer source. Major recycling manufacture plans to reduce the purchase price or limit the purchase volume for the second half of July when a lot of scrap flew to the dealer along with the purchase price hike by the firm for the first half of July.

Inquiries for secondary aluminium ingot and deoxidizing agent usage are fewer while the demand for re-melted scrap ingot, which was relatively firm, would decrease when RSI demand is likely to drop.

The purchase price by makers is around 90 yen per kilogram for UBC scrap. However, the users suspend the purchase expecting price cut, according to the trade firm source. AUBC supply is expected to increase more due to the hot weather. The supply would exceed the demand.