SMM, September 29:
Today, SMM A00 aluminum prices closed at 24,110 yuan/mt, down 60 yuan/mt from the previous trading day. The aluminum scrap market lowered prices by 50-100 yuan/mt. In some regions, after prices had dropped 200-300 yuan/mt the previous day in tandem with futures, aluminum scrap quotes today were either held flat or raised by 100 yuan/mt as futures rebounded. The cumulative decline this week remained at 200 yuan/mt. In terms of price spreads, on September 29, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was about 2,519 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was about 1,353 yuan/mt. On the import side, August aluminum scrap imports recovered MoM, mainly due to the resumption of shipping schedules and replenishment of supply from Southeast Asia. In terms of supply, tax inspections in Henan, Hunan, and other regions continued to intensify and advance in depth. Compliant, invoiced aluminum scrap became increasingly scarce, providing strong support for prices. Meanwhile, sales channels for non-invoiced cargo narrowed under compliance pressure, and some traders were forced to cut prices to sell, keeping prices under persistent downward pressure. On the demand side, the cast aluminum alloy "September peak season" underperformed, with demand yet to see a substantial increase. Demand for wrought aluminum alloy was moderate, and in-factory aluminum scrap inventory was relatively ample.
This week, the aluminum scrap market is expected to continue consolidating on a strong note. The mainstream trading range for shredded aluminum tense scrap (priced based on aluminum content) is expected to center around 20,500-21,200 yuan/mt.
