A00 continued to rise by 230 yuan/mt, aluminum scrap prices overall followed the gains [Aluminum Scrap Daily Review]

SMM, July 30:

Today, SMM A00 spot aluminum prices closed at 23,630 yuan/mt, up 230 yuan/mt from the previous trading day. Aluminum scrap prices across regions generally followed the increase by 100-200 yuan/mt. Regarding price spreads, on July 30, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was approximately 2,070 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was approximately 860 yuan/mt. Against the backdrop of the consumption off-season, aluminum scrap suppliers showed low willingness to sell at low prices, and overall aluminum scrap prices remained firm. Demand side, with the arrival of high-temperature holidays, downstream cast aluminum alloy enterprises saw operating rates decline and orders shrink; secondary aluminum plate/sheet and strip enterprises had moderate operating rates, but overall raw material demand support weakened significantly compared to Q2. In the short term, supply side, the tight supply of compliant invoiced cargo persists, and suppliers’ low willingness to sell at low prices provides bottom support for prices. Import side, the lagging effects of the UAE export ban and the EU tax increase policy will gradually manifest in the coming months, with port arrivals from June to August remaining at low levels. Demand side, the sluggish downstream orders trend is difficult to change in the short term, and scrap utilization enterprises are likely to continue purchasing as needed and maintain low inventory strategies, with the procurement atmosphere unlikely to see significant improvement.