Aluminium UBC Spreads Widen as Turkey Copper Demand Steadies

Aluminium UBC Spreads Widen as Turkey Copper Demand Steadies

Arbitrage spreads in secondary metals remain active today, with aluminium UBC (used beverage cans) commanding stronger landed-cost advantage on the Germany-to-India corridor, while copper scrap from Poland into Turkey holds steady despite mixed European sentiment.

Aluminium UBC: India Demand Lifts Margins

The Germany-to-India UBC corridor is pricing at a gross margin of 12.8%, translating to approximately €260 per metric tonne net of landed cost. The landed price sits at €2,040/MT, reflecting consistent Indian mill demand for secondary aluminium feedstock. Confidence on this corridor stands at 0.78, indicating reasonable execution certainty for traders and brokers structuring deals in this lane.

Indian smelters have maintained steady intake of UBC material, supported by domestic beverage and automotive casting demand. Logistics costs from Northern Europe remain stable, and container availability into Indian ports has not tightened materially. Traders should note that while margins are attractive, landed-cost assumptions should be validated against current freight indices and port fees.

Copper Scrap: Poland-Turkey at 5.0%

Millberry copper scrap from Poland into Turkey is trading at a 5.0% gross margin, or roughly $425 per tonne, with landed cost near $8,575/MT. Confidence here is 0.72, reflecting moderate execution risk and tighter spreads compared to aluminium.

Turkish copper processors remain active buyers, though European scrap supply has not tightened sharply. The narrower margin reflects competitive pricing from other European sources and typical seasonal summer softness in European scrap offtake. Brokers should expect that landed-cost assumptions may shift if Turkish import duties or logistics bottlenecks emerge; current pricing assumes unimpeded border clearance and standard handling fees.

What Traders Should Watch

• Confidence levels (0.72–0.78) suggest moderate execution risk on both corridors; counterparty credit and logistics delays remain material variables.
• Landed-cost figures are indicative and exclude trade finance, insurance, and broker fees.
• Seasonal summer patterns may compress margins further if European supply increases or Indian demand softens.
• Currency volatility (EUR/USD, EUR/INR) can shift effective spreads by 1–2% week-on-week.

Both corridors remain tradeable for recyclers and brokers with established logistics and credit lines, but wider margins in aluminium UBC suggest that lane warrants closer attention today.

See it on the platform

ArbiTrade costs every corridor net of freight, duties, inspection, and FX, then routes structured RFQs to verified counterparties. Create a free account to explore live corridors and dispatch your first RFQ.

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.