Aluminum price rise drives aluminum scrap prices up, with the price difference between A00 aluminum and aluminum scrap widening again [Aluminum Scrap Daily Review]

SMM, September 3:

Today, SMM A00 aluminum prices closed at 24,350 yuan/mt, up 270 yuan/mt WoW from the previous trading day, with aluminum scrap market prices rising across the board. In terms of price spreads, on September 3, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan stood at approximately 2,461 yuan/mt, while the price difference between A00 aluminum and shredded aluminum tense scrap was around 1,240 yuan/mt, widening further WoW. On the import side, previously traded cargoes arriving at ports have provided some supplement to domestic supply, with port quotes for imported shredded aluminum zorba holding near $2,485/mt, stable MoM. However, the UAE export ban and the EU tariff hike continue to weigh, with supply contraction from Europe and the Middle East unchanged. Premium scrap with invoices remains tight overall, leaving limited room for import growth. A substantive recovery in end-use demand still requires observation, and inventory digestion for wrought aluminum alloy scrap will take time. Scrap utilization enterprises are likely to continue purchasing as needed and maintain low-inventory operating strategies, with the pace of price follow-through expected to remain slow. Next week, the aluminum scrap market is expected to consolidate on a strong note with a slight upward shift in the price center. The mainstream trading range for shredded aluminum tense scrap (priced based on aluminum content) is expected to center around 20,300-21,000 yuan/mt, with close attention needed on the pace of downstream order recovery.