China downstream sector turns bearish towards secondary aluminium prices

Following the slump in Aluminium A00 ingot prices and intensification of bearish sentiment in the market, downstream sector participants have turned sceptical about performance of the domestic secondary aluminium market. Some are intending to take a ‘wait-n-watch’ stance before transaction improves in the market.

As updated by Shanghai Metals Market, prices of some of the major aluminium scrap categories as on November 29 are as follows:

Major secondary aluminium enterprises in China are offering RMB 100 per tonne lower than the earlier prices. Average Zorba price is standing flat at RMB 15,500 per tonne.  

Aluminium A00 ingot prices have dropped from RMB 16,140 per tonne in November beginning this year to RMB 14,430 per tonne on November 29. Premium and discount in the spot market are ranging at RMB -180~RMB-140 per tonne.  Average aluminium alloy prices have also fallen by RMB 100 per tonne in major domestic markets.

According to the common national standard on “imported solid scrap” submitted to WTO by China, inclusion of other scrap components including wood scrap, waste paper, plastic scrap etc. with particle size less than 2mm should be controlled at one per cent of the total weight of imported base metal scrap. The weight of the powder substance in it having particle size less than 2mm shall be controlled at 0.1 per cent of the total weight of imported base metal scrap, SMM updated.