08 OCTOBER 2012Platts
Japan boosts aluminum scrap exports to China and S Korea
Edited by : AL CIRCLE
2 min read
Japan is increasing exports of scrap aluminum to China as it gets higher prices overseas, market sources said Wednesday.
The country exported 47,645 mt of scrap aluminum to China over January to July, up from 39,878 mt a year ago, customs data released last week showed. Japan's total scrap aluminum exports to 14 countries rose to 74,624 mt from 67,091 mt a year earlier.
In Japan, 6063 aluminum sliding door scrap (0.2-0.6% silicon, 0.45-0.9% magnesium, 0.1% copper) is trading at Yen 115-125/kg ex-yard for September deliveries, three local traders said. The export price would be Yen 125-135/kg ($1,600-$1,730/mt) on an FOB basis, including Yen 10/kg additional charges, they added.
Chinese secondary aluminum alloy producers were paying $1,700/mt CIF or more for scrap feedstock imported from the US, sources said. Some US scrap contains more copper and so trades at higher prices, but Japanese sources said they were seeing an interest in Japanese scrap from Chinese smelters as US scrap supply has been tight this year.
"Deals are done if the exchange rates work for trading parties," a Japanese trader said.
In May, aluminum door scrap traded in Japan at Yen 135-145/kg ex-yard, and the lower domestic prices led dealers to turn to export markets, he added.
South Korea is Japan's second major export market for aluminum scrap with 13,970 mt over January to July, which was, however, down from 16,274 mt a year ago.
"South Korea's purchase volumes fluctuate widely from month to month. But Korean smelters are dependent on imports from the US, Europe, India, Thailand, as they are not self-sufficient and aluminum alloy demand from Hyundai Motor is growing," the trader said.
Japan used to export mainly used beverage cans before 2010. But recently, demand for higher-grade 6063 scrap with less impurities has risen overseas, Japanese traders said.
The country exported 47,645 mt of scrap aluminum to China over January to July, up from 39,878 mt a year ago, customs data released last week showed. Japan's total scrap aluminum exports to 14 countries rose to 74,624 mt from 67,091 mt a year earlier.
In Japan, 6063 aluminum sliding door scrap (0.2-0.6% silicon, 0.45-0.9% magnesium, 0.1% copper) is trading at Yen 115-125/kg ex-yard for September deliveries, three local traders said. The export price would be Yen 125-135/kg ($1,600-$1,730/mt) on an FOB basis, including Yen 10/kg additional charges, they added.
Chinese secondary aluminum alloy producers were paying $1,700/mt CIF or more for scrap feedstock imported from the US, sources said. Some US scrap contains more copper and so trades at higher prices, but Japanese sources said they were seeing an interest in Japanese scrap from Chinese smelters as US scrap supply has been tight this year.
"Deals are done if the exchange rates work for trading parties," a Japanese trader said.
In May, aluminum door scrap traded in Japan at Yen 135-145/kg ex-yard, and the lower domestic prices led dealers to turn to export markets, he added.
South Korea is Japan's second major export market for aluminum scrap with 13,970 mt over January to July, which was, however, down from 16,274 mt a year ago.
"South Korea's purchase volumes fluctuate widely from month to month. But Korean smelters are dependent on imports from the US, Europe, India, Thailand, as they are not self-sufficient and aluminum alloy demand from Hyundai Motor is growing," the trader said.
Japan used to export mainly used beverage cans before 2010. But recently, demand for higher-grade 6063 scrap with less impurities has risen overseas, Japanese traders said.
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