Aluminium Scrap Spreads Widen as UBC Demand Holds in South Asia

Aluminium Scrap Spreads Widen as UBC Demand Holds in South Asia

Aluminium used beverage can (UBC) scrap continues to command premium spreads in the Germany-to-India corridor, with gross margins sitting at 12.8% today—equivalent to roughly $260 per metric tonne on a landed cost of $2040/MT. Confidence in this flow remains solid at 0.78, suggesting consistent buyer appetite and stable logistics despite seasonal monsoon pressures in South Asia.

The wider aluminium spread reflects steady demand from Indian re-melters, who continue to feed domestic can-sheet and extrusion markets. Feedstock scarcity in the region and logistics constraints from competing supply routes keep premiums elevated. Traders monitoring this corridor should note that landed costs remain sensitive to bunker fuel volatility and container availability into Indian ports.

By contrast, copper millberry scrap flowing from Poland into Turkey shows more modest economics. The gross margin stands at 5.0%—approximately $425 per tonne—with a landed cost near $8575/MT. Confidence is lower at 0.72, reflecting tighter spreads and more volatile copper price action. Turkish foundries and wire-rod mills remain active buyers, but competition from scrap sourced closer to the Black Sea region has compressed arbitrage windows.

What traders should track:

• Aluminium UBC spreads remain the wider opportunity today, though Indian import licensing and port congestion can shift economics quickly.
• Copper margins are thin; execution risk is higher if spot prices move sharply intraday.
• Both corridors show confidence above 0.70, indicating reliable data but not certainty—landed costs can shift with freight, FX, and commodity spot moves.
• Seasonal factors: monsoon logistics in India and summer holiday shutdowns in Turkey may affect execution timelines.

These spreads are indicative and net of typical landed-cost components (freight, insurance, duties, handling). Actual economics depend on counterparty pricing, lot size, and execution timing. Recyclers and traders should treat these as reference points for market structure, not trading signals.

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ArbiTrade provides market intelligence and coordination only. It does not execute trades, hold funds, act as a counterparty, or guarantee pricing, execution, or profit. This article is general commentary, not investment, legal, or trading advice. Conduct independent diligence before transacting.