Major aluminium scrap prices drop across China markets as demand weakens

The prices of aluminium scrap commodities fell across major regional markets in China as demand weakened among recyclers. In the wake of recent pollution control checks initiated by the government many secondary aluminium producers were forced to scale down their operations. Hence, raw material intake dropped.

The prices of clean tapping aluminium wire, the costliest of all aluminium scrap varieties, fell by 41 per cent on an average across the markets from their previous closing prices to stand at around RMB 12,270 per tonne. As on Thursday, July 27, other Shanghai Metals Market aluminium scrap prices are as follows:

Across-the-board price drop was registered for SMM A00 aluminium ingots as well. The price of A00 Aluminium Ingot (Northeast China) fell by 0.77 per cent from its earlier price band to stand at RMB 14,150 per tonne. A00 Aluminium Ingot price for South China is still trending higher at RMB 14,275 per tonne (-0.73%).

The price of Aluminium Alloy (A356) also dropped by 0.67 per cent from its earlier price of RMB 15,000 as on July 26, to stand at RMB 14,900 per tonne on July 27. Aluminium Alloy (A380) is holding steady at RMB 15,500 per tonne.

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China aluminium scrap prices are expected to hover at lows in the short term till the time recyclers and secondary aluminium producers resume their production in a full-fledged manner. However, aluminium raw materials namely bauxite, alumina prebaked anode, cryolite etc. are holding fairly steady at their current price levels. The price rise can be expected across the value chain as demand escalates in the domestic market.