SHANGHAI, Dec 14 (SMM) -
The daily fluctuations of spot aluminium prices were less than 200 yuan/mt last week, while aluminium scrap prices climbed 200 yuan/mt due to falling supply. Aluminium recycling from waste end products declined in H2 due to poor consumption. The supply of new aluminium scrap also declined as some aluminium processing companies reduced their output after achieving annual targets. Tighter supply allowed aluminium scrap prices to outperform primary aluminium prices, narrowing the price difference between the two.
The prices of ADC12 secondary aluminium alloy stabilised last week, and rose 100 yuan/mt as of Friday when compared with a week ago. On the cost side, the prices of #553 silicon with oxygen slumped by 2,000 yuan/mt. However, the prices of aluminium scrap remained high amid tight supply, except in Guangdong. On the demand side, die-casting plants resumed purchases after running out of raw material inventory. A few die-casting plants plan to stockpile in advance due to concerns of the negative impact of the Winter Olympics and COVID-19 pandemic. Large-scale stockpiling is expected to occur at the end of the month. On the supply side, secondary aluminium alloy plants in Guangdong that use imported aluminium scrap currently have sufficient raw material inventories and increased their output slightly, while producers in other regions maintained stable production. The import window of aluminium alloy ingots remains closed, and fewer imported cargoes arrived in Ningbo due to the pandemic. Secondary aluminium alloy prices are expected to continue to fluctuate within a narrow range in the short term under the influence of high raw material prices and weak demand. The prices may rise slightly if downstream restocking increases.
