Japanese aluminum auto shred scrap suppliers are eyeing exports as local demand has slowed on the back of falling car production since October, market sources said Tuesday.
Spot inquiries for scrap aluminum exported from Japan to Asian countries rise at this time of the year as scrap yards close in regions experiencing snowfall, tightening global supplies.
In addition to seasonal beverage cans and window frames scrap that comprise over half of Japanese scrap aluminum exports, scrap dealers have started to export engine and auto shred scrap, as Japanese automakers cutting output since October have hit demand.
"Engine and auto shreds were not exported because they were going straight to local secondary aluminum alloy smelters working closely with the automakers," said one local scrap dealer. "But alloy demand has fallen particularly in the Kanto region due to the recent slump in car production," he added.