Futures: Overnight, the most-traded AD2511 cast aluminium alloy futures contract opened at RMB 20,175 per tonne, reaching a high of RMB 20,195 per tonne and a low of RMB 20,085 per tonne, before closing at RMB 20,105 per tonne, down RMB 95 per tonne or 0.47 per cent from the previous close. Trading volume stood at 765 lots, with open interest at 8,541 lots, primarily due to bulls reducing their positions.
Spot-Futures Price Spread Daily Report: According to SMM data, on August 13, the SMM ADC12 spot price was at a theoretical premium of RMB 165 per tonne over the closing price of the most-traded cast aluminium alloy futures contract (AD2511) at 10:15 a.m.
Aluminium Scrap: On Wednesday, the spot price of primary aluminium increased by RMB 120 per tonne from the previous trading day, with SMM A00 spot aluminium closing at RMB 20,760 per tonne. The overall aluminium scrap market prices followed suit. Baled UBC aluminium scrap was quoted at RMB 15,500-16,000 per tonne (tax-excluded), while shredded aluminium tense scrap (with water price) was quoted at RMB 17,100-17,600 per tonne (tax-excluded price). Baled UBC aluminium scrap prices rose by RMB 50 per tonne M-o-M, while shredded aluminium tense scrap (with water price) and automobile/motorcycle wheel hub prices increased by RMB 100 per tonne M-o-M. Regionally, Shanghai, Jiangsu, Shandong, Jiangxi, and other areas closely followed aluminium price movements, with price adjustments ranging from RMB 50-100 per tonne. In Hubei, prices remained flat M-o-M today. Regarding the price difference between A00 aluminium and aluminium scrap, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan narrowed by RMB 8 per tonne to RMB 1,972 per tonne, while the price difference between A00 aluminium and mechanical casting aluminium scrap in Shanghai narrowed by RMB 15 per tonne to RMB 1,941 per tonne.
Silicon Metal: On August 13, SMM east China non-oxygen blown #553 silicon metal was priced at RMB 9,100-9,300 per tonne; oxygen-blown #553 at RMB 9,300-9,500 per tonne; #521 at RMB 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 silicone at RMB 10,200-10,600 per tonne; and #3303 at RMB 10,700-10,900 per tonne. Silicon metal prices in Kunming, Huangpu Port, north-west China, Tianjin, Xinjiang, Sichuan, and Shanghai also remained stable.
Overseas Market: Overseas ADC12 quotes remained stable at USD 2,460-2,480 per tonne, with imported spot prices hovering around RMB 19,600 per tonne, maintaining an immediate loss status for imports. The local ADC12 quotes in Thailand (tax-excluded) rose slightly to 82-84 baht per kg.
Inventory: According to SMM statistics, on August 13, the daily social inventory of secondary aluminium alloy ingots in Foshan, Ningbo, and Wuxi totaled 31,611 tonnes, an increase of 138 tonnes from the previous trading day and 393 tonnes from Wednesday (August 6) of last week.
Summary: On Wednesday, aluminium prices extended their gains, with aluminium scrap prices accelerating their upward trend amid undersupply, generally rising by RMB 50-100 per tonne, further pushing up ADC12 prices. SMM ADC12 prices rose by RMB 100 per tonne to RMB 20,350 per tonne. The secondary aluminium market in August continues to be constrained by tight aluminium scrap supplies, with enterprises facing sustained cost pressure, supporting ADC12 prices. However, the lack of significant recovery in consumption will limit the upside potential for prices, and secondary aluminium alloy prices are expected to hold up well within a narrow range. In the short term, close attention should be paid to the recovery progress of end-use demand and the improvement in aluminium scrap supply.
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 information.
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