Southeast Asian Aluminum Scrap Market Remains Range-Bound
The Southeast Asian aluminum scrap market saw limited price movement this week. In Malaysia, Tense remained unchanged at USD 2,750/t, while Talon declined from MYR 13,950/t to MYR 13,500/t (approximately USD 3,300/t). UBC eased slightly from MYR 10,175/t to MYR 10,050/t (approximately USD 2,457/t).
In Thailand, Talon increased marginally to THB 109,800/t (approximately USD 3,268/t), while UBC remained unchanged at THB 84,000/t (approximately USD 2,500/t).
Market participants reported that buying activity remained largely demand-driven, with downstream consumers maintaining cautious procurement strategies. Premium grades such as UBC continued to outperform other scrap categories due to relatively tight availability, while trading in mixed cast scrap and cable scrap remained subdued.
ADC12 FOB Offers Rise Slightly Despite Weak Demand
The Southeast Asian ADC12 market remained generally stable.
Malaysia's domestic ADC12 price held at MYR 12.55/kg (approximately USD 3,068/t), while FOB offers increased from USD 3,090/t to USD 3,110/t. In Thailand, domestic prices eased slightly from THB 103/kg to THB 102.5/kg (approximately USD 3,051/t), while FOB offers recovered from USD 3,065/t to USD 3,090/t.
Producers reported slightly stronger enquiries compared with previous weeks, but actual transactions remained limited as downstream buyers continued to purchase only according to production requirements. Supported by relatively firm scrap costs, several producers modestly raised export offers, although overall trading activity remained subdued.
In India, OEM-grade ADC12 continued to trade at INR 325–345/kg, while non-OEM material remained at INR 320–340/kg. Malaysian ADC12 continued to maintain a price advantage over locally produced material, although Indian buying activity slowed compared with previous weeks.
Imported Aluminum Scrap Prices Continue to Recover
China's imported aluminum scrap market strengthened further this week.
SMM assessments showed imported shredded aluminum scrap (Ningbo Port) rising to RMB 21,970/t, while Tianjin Port increased to RMB 22,020/t, with both markets gaining RMB 500/t from the beginning of the week.
Supported by firmer domestic aluminum prices, import economics have improved and enquiries from traders have become more active. According to market feedback, several imported aluminum scrap cargoes have recently been concluded and are expected to arrive in China in mid-August, indicating that some market participants have begun taking advantage of the improved import window.
Nevertheless, downstream consumers continue to purchase primarily on a hand-to-mouth basis, and large-scale restocking has yet to emerge. Market participants will closely monitor actual arrivals and downstream consumption in the coming weeks.
Market Outlook
SMM expects the Southeast Asian secondary aluminum market to remain range-bound in the near term.
Premium aluminum scrap grades are expected to stay relatively resilient due to limited availability, while ADC12 prices are likely to remain under pressure from sluggish downstream demand. In China, the arrival of imported scrap cargoes in mid-August could improve spot supply, although the overall market recovery will continue to depend on downstream consumption.
Going forward, market participants will closely monitor LME aluminum prices, global scrap availability, China's import arbitrage, and demand from the automotive and die-casting sectors, all of which are expected to remain the key drivers of regional pricing and trade flows.
