Shinsho Corporation and Taguchi Metals are concentrating on recycling aluminium into high-quality wrought alloys, due to increased demand for low-carbon materials.

These two companies formed a partnership to build a supply chain for recycled aluminium. The aim is to supply manufacturers that need materials with lower carbon emissions, especially in rolled aluminium products.

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The project focuses on scrap produced wrought alloys. These alloys are used in higher-value applications but are more difficult to make from recycled material. Most recycled aluminium goes into cast alloys now. These can take more dirt and junk.

The companies will use scrap from old cars and home appliances. These are low-grade materials usually skipped for top recycling. The partners aim to fix sorting to use this scrap better.

Japan has a limited supply of high-grade aluminium scrap. This makes it necessary to process lower-quality material more efficiently. The partnership combines Taguchi Metals’ sourcing network with Shinsho’s resource management experience.

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Japan’s non-ferrous scrap recycling market is expected to grow about 5.6 per cent annually and reach USD 4.7 billion by 2033, supported by recycling policies and rising raw material costs. The companies are targeting higher-value segments within this market.

Sorting mixed scrap for high-quality wrought alloys is hard. It needs advanced technology and money. The partners will build better sorting systems to raise product quality.

Each company has different skills. Taguchi Metals has experience in sourcing and sorting scrap, while Shinsho has experience in resource management. Together, they want to use low-grade scrap better.

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The companies expect benefits from securing a stable supply of low-carbon raw materials. This may help reduce exposure to price changes and support better margins over time.

Demand for low-carbon aluminium is going up. Climate rules and emission laws cause this. It should help us use more recycled materials.

However, the project depends on whether the companies can scale up sorting technology and secure enough scrap. The outcome will depend on execution and access to raw materials.

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Taguchi Metals Corporation and Shinsho Corporation are both Japanese companies. The former was established in 1970 and is a specialised recycling company focusing on scrap metal, while the latter is a major trading company specialising in non-ferrous metals and iron and steel.