Primary Aluminum Returns to 24,000 Level, Aluminum Tense Scrap Prices Hold Steady [Daily Aluminum Scrap Review]

SMM, August 11:

The SMM A00 spot aluminum price closed at 24,100 yuan/mt today, up 110 yuan/mt from the previous trading day. In China's scrap aluminum market, tense scrap prices held steady with a wait-and-see stance, while bare bright aluminum wire and aluminum extrusion scrap free of paint rose in tandem. Regarding the price difference, on August 11, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was about 2,360 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was about 1,260 yuan/mt. As primary aluminum prices continued to climb, scrap aluminum showed insufficient upward momentum, and the price difference widened again. Demand for secondary aluminum alloys and their downstream sectors weakened marginally. Coupled with high inventories of wrought aluminum raw materials like doors and windows in Henan and other regions, the price transmission mechanism for scrap aluminum was hindered, leaving upward momentum clearly weak. Affected by the traditional consumption off-season, operating rates at downstream cast aluminum alloy enterprises kept declining, order volumes shrank, and the scrap aluminum market lacked substantive support. Looking ahead, the supply-demand mismatch pattern is unlikely to reverse in the short term. Scrap utilization enterprises will likely maintain strategies of purchasing as needed and low-inventory operations, with market trading atmosphere seeing little substantial improvement. This week, shredded aluminum tense scrap priced based on aluminum content is expected to be dragged down by stagnant raw material prices and weak downstream demand, operating under overall pressure, with the prevailing trading range anticipated to center around 20,200-20,800 yuan/mt.