A00 continues to decline, wait-and-see sentiment spreads over aluminum scrap price adjustments [Aluminum Scrap Daily Review]

SMM, October 14:

Today, SMM A00 aluminum prices closed at 23,620 yuan/mt, down 90 yuan/mt from the previous trading day. Wait-and-see sentiment spread on the buying side, and aluminum scrap quotes in several regions such as Foshan, Hunan, Hubei, and Anhui remained unchanged. In terms of price spreads, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was about 2,323 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was about 990 yuan/mt. As mid-October arrived, the aluminum scrap market continued to hold up well. On the supply side, aluminum scrap yards briefly resumed operations, and scrap release increased somewhat, but recycling policies still constrained liquidity. Invoice quota limitations remained widespread, and the tight invoice supply pattern was unlikely to ease in the short term, with tight supply continuing to support prices. On the demand side, as the traditional peak consumption season for cast aluminum alloy gradually kicked off, enterprises accelerated order-taking and procurement pace. Under the dual-tight supply-demand situation, price support for aluminum tense scrap is expected to strengthen further. Demand for wrought aluminum alloy was moderate, and in-factory inventory was relatively ample, but with tax inspections limiting aluminum scrap supply expectations, the upward price channel will gradually open up as well.