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[waste Aluminum column] it is difficult to significantly improve the liquidity of waste aluminum market by suppressing the circulation of waste aluminum market by high price inventory before the festival.
Apr 10,2020 14:44CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

Daily Review of waste Aluminum Price

Today's A00 aluminum prices continued to rise 120 yuan / ton, mainly due to last night OPEC reached an agreement to reduce production and inventory plunged 69000 tons yesterday, however, these factors are relatively limited price support, one is OPEC production reduction, but its strength is not as strong as expected, crude oil prices fell back; second, aluminum ingot inventory fell sharply, mainly due to downstream enterprises bottom hoarding and short-term consumption of recycled aluminum industry, does not fully represent the improvement in consumption. At present, the main problem affecting the price of waste aluminum is that the liquidity is too poor, and the main culprit is the suppression of high price waste aluminum inventory before the festival. After the festival, because the aluminum price continued to fall, and the waste aluminum recyclers returned to work late, missed the opportunity of pre-stop loss shipment, resulting in its resumption of work, there are a large number of high-price inventory. On the other hand, in the downstream, the poor demand makes the recycled aluminum enterprises have a low tolerance for the price of waste aluminum, which makes the quotation of the trading order too large and it is difficult to conclude the transaction. At the same time, although the epidemic situation has improved, the output of waste aluminum reduced due to the disappearance of early consumption and fewer waste pickers in the current environment, resulting in a limited supply of new waste aluminum and too little inflow into the low-cost waste aluminum market. it is difficult to activate the liquidity of the waste aluminum market. At present, the price of used profile aluminum in Shanghai is 9800 yuan / ton without tax, and that of broken raw aluminum in the vicinity of 92 effluent is 9800 yuan / ton without tax, and the transaction is less.

April 10 SMM aluminum alloy ADC12 price

Note: ADC12 (waste aluminum)-High quality and environmentally friendly ADC12 aluminum alloy ingots produced entirely from waste aluminum

ADC12 (Raw Aluminium)-High quality and environmentally friendly ADC12 Aluminium Alloy Ingot produced entirely from Raw Aluminium

Note: the left axis is the absolute price and the right axis is ADC12 to A00 aluminum processing fee

Regenerated aluminum: the overall transaction price continues to fall, the specific price for large recycled aluminum enterprises quoted down to 13000 yuan / ton, mainly due to the previous price quoted high enterprise prices have dropped significantly. The cash quotation of small and medium-sized enterprises remains 12800 yuan / ton, and a small number of low prices can even be as low as 12600 yuan / ton. On the whole, following the decline in southwest prices, prices in South China have also gradually begun to fall. The main reason is that high-priced enterprises were also forced to cut prices because of order pressure. On the export side, due to almost no demand from Japan and South Korea, export prices rose slightly, low prices disappeared, the overall price rose to 1350 US dollars / ton, the transaction is still poor. In April, the recycled aluminum industry was faced with the double blow of insufficient supply of waste aluminum to raise costs and lower downstream demand to depress the selling price. Under the current game, some recycled aluminum enterprises have to stop production and look for materials, and waste aluminum recyclers also greatly increase labor costs because of the poor liquidity of waste aluminum. Before the scrap aluminum holder cleans up the high price inventory before the festival, the liquidity of the waste aluminum market is difficult to obtain the significant improvement.

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