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MYSTEEL

China's aluminium scrap prices surge again on bullish sentiment

2MINS READ

Image of aluminium scrap

On March 9, for example, the average price for domestically-generated #6063 aluminium scrap in South China's Guangdong province had jumped by 5.9 Per Cent from the end of February to reach RMB 19,750 per tonne (USD 2,872 per tonne), the highest since January 2023, according to Mysteel's assessment.

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On the same day, China's composite primary aluminium price was also assessed at a three-year high of RMB 25,179 per tonne, including the 13 per cent VAT, higher by 7.5 per cent from end-February.

The military conflict in the Middle East since late February has caused disruptions to global maritime traffic and triggered market worries about the supply stability of bulk commodities, including nonferrous metals, as reported. This gave a boost to primary aluminium prices.

The bullish sentiment was also reflected in China's futures markets, with the most-traded aluminium contract for April delivery on the Shanghai Futures Exchange closing at RMB 24,880 per t on March 10, higher by 5 per cent from the settlement price of February 27.

Also Read: India: Aluminium scrap import prices climb up w-o-w; UAE port activity hit by US-Iran conflict

On fundamentals, however, domestic demand for aluminium scrap remains lukewarm as production among secondary aluminium producers is hovering at a low level, Mysteel's survey showed.

During the week of February 27-March 5, the second week after the Chinese New Year (CNY) holiday, production of secondary aluminium billets by the 82 domestic smelters under Mysteel's tracking totalled just 5,400 tonnes, lower by a significant 59 Per Cent compared with the same period after last year's CNY.

In February, the total output of secondary aluminium alloys among the 158 Chinese smelters touched a six-year low of 226,600 tonnes, Mysteel's survey showed.

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Note: This news is published under a content and exchange agreement with Mysteel

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