Resource Recycling and Auto Parts Manufacturing and Sales

Problem Solving Case Studies

Aluminum Recycling Business

Small and Medium-sized Automotive Parts Manufacturer

Correctly assess the purchase unit price and purchase scrap at a good price.

Correctly assess the purchase unit price and purchase scrap at a good price.


Until now, the company had been selling aluminum scrap generated in the manufacturing process to a local nonferrous wholesaler, but the market price fell to a degree where the scrap was treated as reverse chargeable (treated as industrial waste). The company resultantly began to receive expense claims.


Is it possible to trade securities even if the market price falls?

When general trading companies and nonferrous metal wholesalers purchase the metal, they often purchase it at a lower valuation than the market price and sell it to manufacturers of light compression, rolling, extrusion, or secondary alloys, etc. because of the intermediate margin.

Therefore, when the market price deteriorates, the scrap is treated as industrial waste, which leads to the incurrence of expenses (cost increase). In addition, reusable materials are sometimes evaluated as non-purchasable, which prevents them from being accurately appraised.

Key Points of the Issue

・We want to be able to correctly assess scrap and continue to trade even if market prices decline.

・We want to make effective use of waste as resources that enable the realization of zero emissions.


Key Points of Resolution

As a manufacturer, we correctly assess whether aluminum scrap is reusable and purchase it directly, which enables us to purchase it at high prices.

Correctly assess the purchase unit price and purchase scrap at a good price.

Since we use/melt nonferrous scrap as a manufacturer, we can correctly assess whether the scrap is reusable or not. In addition, direct transactions eliminate intermediary margins (trading companies and wholesalers), enabling us to purchase scrap at high prices.

This leads to transactions of scrap that otherwise would not be possible under certain market conditions, resulting in a win-win scenario for both the customer and our company and contributing to the more effective use of resources.

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and sales of aluminum ingots and molten metal.

Aluminum Recycling Business

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