SMM, September 24:
Today, SMM A00 aluminum prices closed at 24,170 yuan/mt, down 70 yuan/mt from the previous trading day, while the aluminum scrap market overall declined by 100 yuan/mt. In terms of price spreads, on September 24, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan stood at approximately 2,533 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap stood at approximately 1,312 yuan/mt. On the import side, August aluminum scrap imports recovered MoM, mainly driven by the resumption of shipping schedules and replenishment of Southeast Asian supply. In terms of supply, tax inspections in Henan, Hunan, and other regions continued to intensify and advance in depth, with compliant, invoiced aluminum scrap becoming increasingly scarce and prices receiving strong support; meanwhile, non-invoiced supply saw narrowing sales channels under compliance pressure, with some traders forced to cut prices to sell, keeping prices under persistent downward pressure. On the demand side, the cast aluminum alloy "September peak season" fell short of expectations, with demand yet to see substantial growth; wrought aluminum alloy demand remained moderate, and in-factory aluminum scrap inventory was relatively ample.
This week, the aluminum scrap market is expected to consolidate on a strong note, with mainstream shredded aluminum tense scrap (priced based on aluminum content) likely to trade in the range of 20,500-21,200 yuan/mt. Close attention should be paid to the scope of tax inspection expansion and downstream stocking ahead of the National Day holiday.
