SMM, May 8:
Today, spot aluminum prices rose by 10 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 19,620 yuan/mt. The overall aluminum scrap market prices remained unchanged. After the Labour Day holiday, the operating rate of the secondary aluminum industry declined overall. Downstream processing enterprises experienced weak order releases, with procurement mainly driven by immediate needs.
Today, the quoted prices for baled UBC aluminum scrap were concentrated in the range of 14,800-15,400 yuan/mt (tax not included), while the quoted prices for shredded aluminum tense scrap were concentrated in the range of 15,650-17,150 yuan/mt (tax not included). Regionally, quoted prices in Hunan, Jiangxi, Foshan, Hubei, and other places remained unchanged. Prices in other regions, such as Shanghai, Jiangsu, Henan, etc., followed A00 aluminum prices and made slight adjustments, with price adjustments ranging from 10-30 yuan/mt. By product, the quoted prices for aluminum tense scrap products, such as shredded aluminum tense scrap, wheel hub removed from vehicle, bare bright aluminum wire, and shredded wrought aluminum alloy scrap, remained unchanged from yesterday.
In the short term, the aluminum scrap market is likely to maintain a pattern of fluctuating at highs. However, if primary aluminum experiences strong fluctuations due to macro factors (such as US Fed policies, geopolitical conflicts), or if domestic secondary aluminum enterprises collectively cut production, aluminum scrap prices may face periodic pressure.
![Lower Costs Coupled With Weaker-Than-Expected Demand Push Secondary Aluminum Prices Down[SMM Analysis]](https://imgqn.smm.cn/production/admin/votes/imageskkgTu20240508153005.png)
