Futures: The most-traded cast aluminium alloy contract AD2511 opened at the highest point of RMB 20,100 per tonne, hit a low of RMB 20,025 per tonne, and finally closed at RMB 20,085 per tonne, down RMB 5 per tonne or 0.02 per cent from the previous close. Trading volume was 448 lots, with open interest at 7,995 lots, mainly due to an increase in short positions.
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Daily basis report: According to SMM data, on August 18, the theoretical premium of SMM ADC12 spot price over the closing price of the most-traded cast aluminium alloy contract (AD2511) at 10:15 am was RMB 330 per tonne.
Aluminium scrap: On Monday, the spot primary aluminium price decreased by RMB 160 yuan/mt compared to the previous trading day, with SMM A00 spot closing at RMB 20,550 yuan/mt, leading to a general decline in the scrap aluminium market. Baled UBC prices were concentrated at RMB 15,400-15,900 per tonne (excluding tax), while shredded aluminium tense scrap (priced based on aluminium content) prices were concentrated at RMB 17,100-17,600 per tonne (excluding tax). Baled UBC prices fell 100 per tonne W-o-W, while shredded aluminium tense scrap (priced based on aluminium content) and wheel hub prices remained unchanged WoW. In terms of the price difference between A00 aluminium and aluminium scrap, the Foshan mixed aluminium extrusion scrap free of paint saw a narrowing of RMB 160 per tonne W-o-W to RMB 1,762 per tonne, while the Shanghai mechanical casting aluminium scrap spread widened by RMB 29 per tonne W-o-W to RMB 1,974 per tonne. It is expected that the scrap aluminium market will fluctuate at highs this week. Affected by the transitional period of relevant policies for secondary aluminium, raw material purchase prices are likely to rise, with shredded aluminium tense scrap (priced based on aluminium content) resources becoming tighter, and the operating range is expected to fluctuate at RMB 17,100-17,600 per tonne (excluding tax); baled UBC, supported by downstream can stock consumption, is expected to operate within the range of RMB 15,500-16,000 per tonne (excluding tax).
Silicon metal: On August 18, SMM east China non-oxygen blown #553 was priced at RMB 9,100-9,300 per tonne; oxygen-blown #553 at RMB 9,300-9,500 per tonne; #521 at 9,500-9,700 per tonne; #441 at RMB 9,600-9,800 per tonne; #421 at RMB 9,600-9,900 per tonne; #421 for silicone use at RMB 10,200-10,600 per tonne; and #3303 at 10,700-10,900 per tonne. Some silicon prices in Tianjin increased. Prices in Kunming, Huangpu Port, Northwest, Shanghai, Xinjiang, and Sichuan regions remained stable.
Overseas market: Currently, overseas ADC12 quotes have risen to the range of 2,470-2,500 USD per tonne, with domestic import spot prices holding steady around RMB 19,700 per tonne, leading to a further widening of immediate import losses; Thailand's local ADC12 prices (excluding tax) were concentrated at 82-84 Thai baht/kg.
Inventory: According to SMM statistics, on August 19, the daily social inventory of secondary aluminium alloy ingots in Foshan, Ningbo, and Wuxi totalled 31,432 tonnes, a decrease of 221 tonnes from the previous trading day and 41 tonnes from last Tuesday (August 12).
Summary: Due to recent policy adjustments in some regions and the tight supply of scrap aluminium, the decline in raw material costs is limited, supporting companies in maintaining firm quotations. The SMM ADC12 price remains stable at RMB 20,350 per tonne. Demand side, the traditional off-season atmosphere persisted, with sluggish improvement in actual consumption and mediocre performance in transactions. In the short term, cost support and policy fluctuations may continue to underpin prices, but weak demand, coupled with inventory buildup pressure, will limit upside room. Subsequent focus should be on policy implementation and the recovery pace of peak-season demand.
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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