UBC Market really falling?

                                          IRUNIV 2013/07/22

 The dealer of Aluminum UBC (UsedBevarageCan) handling says
He expresses, "In fact, both the trade paper and the major economic paper say that aluminum UBC market has fallen and fallen, but where's the falling?, I got angry beyond doubt".

l Changes in market prices of aluminum UBC

 The major alloy makers announced a reduction in price on aluminum UBC from late June. But in a part, Shinryo, the special recycler of UBC, which has a shortage of UBC stock, conversely turns to raise. Initially, it was partly thought whether it was a local SPOT price raising. The information that is to reduce the buying price from late July is also leaked, but high prices do keeps into the second half even today.   Price around 143 yen/kg continues at Fuji-Oyama factory's CIF price. A high price in the neighborhood of 140 yen is being distributed in directly affiliated dealer of Shinryo, and this is higher than FOB price of 133 yen (as of July 19) of Korean products NOVELIS.
 Also at previous article, he stated that the spots had not appeared yet because the UBC outbreak was in the pre-harvest months.
→(Related article) The market of aluminum raw materials A drain & tight on the open market

 However, the understanding was a little unreasonable before, but if you check the market more deeply, UBC does not appear in the market, in fact. There was high price for Korean products as said before, and we can conclude that Shinryo's high price buying influences the most strongly.
 According to sources, it is heard that the high price buying from the company continues all September or all the end of the year. Why do they continue the high price buying that is conversely to the common market thus far? Originally it is such a company with idea of resistance operations, but therefore so far they are burdened by a deficit several times (*including Mitsubishi Materials Era). If the buyer is unskillful, there is an end of the matter. But the current case will be the result of the failure on inventory adjustment for the last years.
 It is the company which pushed forward the consumption of high price stock, but we notice that there is no spot. When the buying stopped suddenly, some other alloy makers were running to Korean products. The current high price buying continues from a simple idea that only the high price is able to return a flow in it suddenly. In addition, strangely, they including the industry media are ignoring this reality. Or perhaps simply they do not know the reality. But in a part, there is a direction that it becomes like "There is a wonder, do they perform information control?" skeptically.
(To be continued)

(IRUNIV Susan)

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