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On June 10, Mysteel assessed the average price for domestically-generated #6063 aluminium scrap in South China's Guandong province at RMB 19,650 per tonne (USD 2,901 per tonne), slightly lower by 0.5 per cent on month and unchanged from the end of May.
{alcircleadd}The increasing tax burden incurred by the aluminium scrap suppliers due to the government's Intensified "reverse invoicing" mandates caused many recycling companies to reduce or even stop scrap collection and processing leading to the further tightening of scrap availability in the market, Mysteel Global noted.
On the other hand, scrap consumption among Chinese secondary aluminium manufacturers shank as the traditional peak season for aluminium products in spring has passed. Mysteel's other survey showed.
For example, the total output of secondary aluminium alloys among the 158 Chinese smelters that Mysteel monitors had ended a two-month rise in May and dropped to 469,000 tonnes, lower by 2.8 per cent compared with April.
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Meanwhile, production of secondary aluminium billets by the 82 domestic smelters Mysteel tracks slid 4.3 per cent on week to 26,366 tonnes during June 4-10, while the total billet inventories held by these smelters had increased for two straight weeks to 7,980 tonnes by June 10.
The recent weakening of primary aluminium prices has also placed downward pressure on prices of aluminium scrap materials. As of June 10, China's national spot price for primary aluminium was assessed by Mysteel at RMB 23,828 per tonne including the 13 per cent VAT, lower by 1.5 per cent from the end of May.
With supply and demand both declining, China's aluminium scrap prices are expected to continue to remain rangebound overall in the weeks ahead, Mysteel survey suggests.
Note: This news is published under a content and exchange agreement with Mysteel
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