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[SMM scrap Aluminium column] Aluminum prices continue to rise. Scrap aluminum holders have increased their willingness to ship.
Apr 17,2020 15:53CST
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 150 yuan / ton to 12150 yuan / ton. Affected by the rise in aluminum prices, waste aluminum holder prices rose slightly, but the willingness to ship increased to a certain extent. The main reason is that the rise in aluminum prices has reduced the loss of high-priced inventories, and some holders are considering reducing the liquidity of inventories to increase capital. Another reason is that the storage capacity of the small recovery station is limited, some of them are in the full warehouse state, but also have a certain willingness to ship. However, the limited consumption and the current low-level recycling personnel also make the source of waste aluminum limited, waste aluminum shipment increase is only a small pick-up, still cherish the sale. In the later stage, the acceptability of the downstream die casting plant needs to be taken into account. If the consumption weakness continues and the downstream consumption can not rise in price, the recycled aluminum enterprises are likely to stop production, and the demand for waste aluminum will decline, forcing the price of waste aluminum to be reduced.

April 17 SMM aluminum alloy ADC12 price

Due to the reduction of the price difference between ADC12 and A00 aluminum to less than 1200 yuan / ton, recycled aluminum enterprises have almost been unable to use A00 aluminum. As for waste aluminum, due to the price of aluminum continued to rise by about 580 yuan / ton on the 7th, waste aluminum also appeared a certain increase in the same time, in the case of unable to use cheap A00 aluminum, the overall cost of recycled aluminum enterprises rose significantly. Affected by this, most recycled aluminum enterprises quoted prices rose slightly today. Specifically, the quotation of large domestic recycled aluminum enterprises rose slightly by 50 yuan / ton, and the cost of recycled aluminum enterprises increased significantly when they were unable to use A00 aluminum, so they had to raise their quotations and maintain a cash transaction range of 1295013250 yuan / tonne. Even enterprises using imported waste aluminum also rose 50 yuan / ton with the market at the same time. As for small and medium-sized enterprises, due to poor demand and relatively low cost, the overall cash quotation range is maintained at 12600 yuan / ton. At present, because the export orders almost disappear, the recycled aluminum enterprises which account for a large proportion of export orders now have relatively large stocks of imported waste aluminum. In order to reduce the inventory pressure, they will maintain the low price order strategy in the near future and suppress the ADC12 price as a whole. On the other hand, it has become the lowest price in the market, and there is no point in continuing to cut prices in the face of weak downstream demand, so there is little willingness to continue to cut prices. At the same time, because the domestic waste aluminum still maintains the relative tension, because cannot use A00 aluminum, under the current ADC12 cost support uses the domestic waste aluminum most recycled aluminum enterprise price will fluctuate with the aluminum price, causes the ADC12 and A00 aluminum price difference to maintain between 9001200 yuan / ton, if the downstream demand cannot digest this price increase, then the high probability appears the significant reduction to stop production.

Distribution Map of Price difference between ADC12 and A00 Aluminum from 2015 to 2020

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

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