SMM, May 15:
Today, spot primary aluminum prices rose by 140 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,350 yuan/mt. Overall aluminum scrap market prices increased. As we enter the mid-to-late May period, with the transition between the off-season and peak season, downstream processing enterprises are experiencing weak order releases, with procurement mainly driven by immediate needs.
Today, the centralized quoted prices for baled UBC aluminum scrap range from 15,350 to 15,950 yuan/mt (tax not included), while the centralized quoted prices for shredded aluminum tense scrap range from 15,850 to 17,350 yuan/mt (tax not included). Regionally, areas such as Jiangxi and Hunan have chosen to maintain their prices, with no overall adjustments made. Price adjustments lag behind those of primary aluminum. In other regions, such as Shanghai, Jiangsu, and Henan, price adjustments range from 100 to 150 yuan/mt, closely following aluminum price movements. In terms of the price difference between A00 aluminum and aluminum scrap, the price spread between A00 aluminum and mechanical casting aluminum scrap in Shanghai increased by 4 yuan/mt compared to yesterday, reaching 1,850 yuan/mt. In Foshan, the price spread between A00 aluminum and aluminum extrusion scrap remained unchanged from yesterday, reported at 1,539 yuan/mt.
In the short term, the aluminum scrap market may continue to fluctuate at highs. The tight supply situation for aluminum tense scrap products is unlikely to change, providing strong price support. Wrought aluminum alloy scrap products will still be dominated by fluctuations in primary aluminum prices, with narrow adjustments expected. Overall, during the transition period between the off-season and peak season, with weak supply and demand in the market, product differentiation and regional price differences may further emerge. Attention should be paid to macro risks such as policy shifts by the US Fed, geopolitical conflicts, which may trigger sharp fluctuations in primary aluminum prices, or concentrated production cuts by domestic secondary aluminum enterprises, which may put pressure on aluminum scrap prices.
