Japan UBC Market Price Nominally High

Market price of used aluminium beverage can (UBC) surged by 10 yen per kilogram around Tokyo this week. UBC market price is nominally high in Japan when domestic demand maintains stagnant while export for South Korea sharply increases. Local UBC consumers’ purchase price is around 75 yen per kg at dealers’ sites without freight. Offer price for South Korea is around 85 yen per kg.

Primary aluminium ingot price, the indicator, is stable at 155-160 yen per kg around Tokyo. Domestic UBC demand maintains weak from secondary aluminium alloy, deoxidizing agent and remelted scrap ingot (RSI). On the contrary, South Korean demand for Japanese UBC is surging when won exchange rate became slightly strong against yen and UBC consumption is relatively active than in Japan.

UBC generation volume is almost as same as usual years in Japan. But supply and demand balance is tight when UBC export is expanding for South Korea and dealers are preserving inventory with an expectation the market price could rise.