Today, spot primary aluminium prices rose by RMB 140 per tonne compared to the previous trading day. SMM A00 aluminium ingot prices closed at RMB 20,350 per tonne. Today, spot primary aluminium prices rose by RMB 140 per tonne compared to the previous trading day. SMM A00 aluminium ingot prices closed at RMB 20,350 per tonne.
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Overall, aluminium scrap market prices increased. As we enter the mid-to-late May period, with the transition between the off-season and peak season, downstream processing enterprises are experiencing weak order releases, with procurement mainly driven by immediate needs.
Today, the centralised quoted prices for baled UBC aluminium scrap range from RMB 15,350 to 15,950 per tonne (tax not included), while the centralised quoted prices for shredded aluminium tense scrap range from RMB 15,850 to 17,350 per tonne (tax not included). Regionally, areas such as Jiangxi and Hunan have chosen to maintain their prices, with no overall adjustments made. Price adjustments lag behind those of primary aluminium.
In other regions, such as Shanghai, Jiangsu, and Henan, price adjustments range from RMB 100 to 150 per tonne, closely following aluminium price movements. In terms of the price difference between A00 aluminium and aluminium scrap, the price spread between A00 aluminium and mechanical casting aluminium scrap in Shanghai increased by RMB 4 per tonne compared to yesterday, reaching RMB 1,850 per tonne. In Foshan, the price spread between A00 aluminium and aluminium extrusion scrap remained unchanged from yesterday, reported at RMB 1,539 per tonne.
In the short term, the aluminium scrap market may continue to fluctuate at highs.
The tight supply situation for aluminium tense scrap products is unlikely to change, providing strong price support. Wrought aluminium alloy scrap products will still be dominated by fluctuations in primary aluminium prices, with narrow adjustments expected.
Overall, during the transition period between the off-season and peak season, with weak supply and demand in the market, product differentiation and regional price differences may further emerge. Attention should be paid to macro risks such as policy shifts by the US Fed, geopolitical conflicts, which may trigger sharp fluctuations in primary aluminium prices, or concentrated production cuts by domestic secondary aluminium enterprises, which may put pressure on aluminium scrap prices.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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