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[SMM waste Aluminium column] macroscopically improve speculative hoarding, increase aluminum prices, continue to rise, recycled aluminum consumption is poor, waste aluminum consumption is difficult to follow up.
Apr 15,2020 16:19CST
The content below was translated by Tencent automatically for reference.

Daily Review of waste Aluminum Price

Aluminum prices continued to rise today, continuing to rise 100 yuan / ton to 11910 yuan / ton. The current rise in aluminum prices deviates from the downstream demand for recycled aluminum ADC12. The rise in aluminum prices is mainly due to the warming of overseas macro sentiment to repair the previous decline, and the whole base price of non-ferrous metals rose. At the same time, at present, there is still a certain backlog of orders in downstream processing enterprises, and the relative improvement of the domestic epidemic situation also has a certain positive effect on market sentiment. In addition, the low level has led to the emergence of some investment hoarding, social aluminum ingot stocks continue to fall, and aluminum prices have continued to pick up in the near future. However, the consumption problem, which is most affected by the epidemic, has not recovered as quickly as prices, especially since the decline in orders caused by exports will gradually be reflected in new orders in April and May over time. Consumption has failed to prove a significant recovery. Aluminum prices are still under pressure. Due to poor demand, downstream recycled aluminum enterprises have a low tolerance for the price of waste aluminum, coupled with the previous fall in aluminum prices and the accumulation of waste aluminum in the hands of holders, waste aluminum trading order quotation still has a large gap, the market transaction is light. At the same time, after the announcement of Q2 imported waste aluminum, the current price of imported waste aluminum is concentrated in the range of 850 US dollars / ton, which still has a price advantage over domestic waste aluminum, and the first batch of Q2 imported waste aluminum has reached 191000 tons. Under the background that the impact of overseas epidemic has not yet appeared, it is expected that the subsequent import of waste aluminum will gradually increase the price impact on China.

April 15 SMM aluminum alloy ADC12 price

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

Due to the slow recovery of terminal consumption, combined with the destruction of the automobile industry caused by the overseas epidemic, the downstream demand for recycled aluminum remains weak. However, this deviates from the recent continuous recovery of aluminum prices, coupled with the current shortage of domestic waste aluminum supply. Low-cost raw materials are difficult to enter the market, and the quotation of recycled aluminum enterprises remains stable. However, weak demand, especially the sharp decline in overseas orders, has forced some companies dominated by export orders to lower prices to fight for some domestic orders, causing the market to hear of some ultra-low prices from time to time. Specifically, large domestic recycled aluminum enterprises remained stable, cash low transaction prices fell slightly, the overall cash transaction range of 12900 yuan 13200 yuan / ton, small and medium-sized enterprises, the proportion of low prices has increased, the overall cash transaction price range maintained at 12600 yuan / ton. The current aluminum price deviates from the weak demand in the recycled aluminum market. Before the bottomless waste aluminum circulates in the market in large quantities, it is expected that the ADC12 price of recycled aluminum will continue to shrink, and more of the current high transaction prices will gradually decline, making the overall market transaction price tend to the low price position, the transaction price center of gravity moves downward.

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