Today, spot primary aluminium prices fell by RMB 150 per tonne from the previous trading day. SMM A00 spot aluminium closed at RMB 20,200 per tonne. Aluminium scrap market prices followed the decline in aluminium prices but remained at highs overall. With the off-season in June approaching, downstream processing enterprises are experiencing weak order releases, and procurement is mainly driven by immediate needs.
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Today, the quoted prices for baled UBC aluminium scrap were concentrated in the range of RMB 15,150-15,750 per tonne (tax not included), while the quoted prices for shredded aluminium tense scrap were concentrated in the range of RMB 15,700-17,200 per tonne (tax not included).
Regionally, Shanghai, Jiangsu, Henan, Shandong, and other regions closely tracked aluminium prices, with price adjustments ranging from RMB 100-150 per tonne. However, the overall price adjustment range still lagged behind that of primary aluminium.
In terms of the price difference between A00 aluminium and aluminium scrap, the price difference between A00 aluminium and mechanical casting aluminium scrap in Shanghai increased by RMB 13 per tonne from yesterday to RMB 1,863 per tonne. In Foshan, the price difference between A00 aluminium and aluminium extrusion scrap continued to rise by RMB 150 per tonne from yesterday to RMB 1,364 per tonne.
In the short term, aluminium scrap market prices are expected to continue fluctuating at highs. The tight supply situation for aluminium tense scrap is unlikely to change, providing solid price support. Wrought aluminium alloy scrap will continue to fluctuate rangebound with primary aluminium.
However, the accumulated risk of a high-level correction in primary aluminium prices, combined with weak demand during the off-season, will limit upside room. For downstream enterprises using aluminium scrap, the ongoing struggle between cost pressure and weak end-user orders may keep operating rates low. The narrowing of import losses may partially alleviate supply pressure, but the transmission effect will be limited. Regional and product-specific price differences may further diverge. Tight supply in South China and other regions may support localised price increases, while prices in regions with weak demand will face downward pressure.
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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