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[SMM scrap Aluminium column] Aluminum prices continue to rise, waste aluminum prices rise rapidly
Apr 20,2020 14:48CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

Daily Review of waste Aluminum Price

Affected by the rise in aluminum prices, the price of waste aluminum holders on Friday afternoon has risen to 300 yuan / ton, only a certain increase in shipments before noon, aluminum rose in the late afternoon and then tragically sold sentiment, and today aluminum prices continue to rise, waste aluminum market to maintain a general rise of 300 yuan / ton. At present, the waste aluminum market is still mainly the contradiction between the shortage of domestic supply and the excess supply of imported waste aluminum. One of the reasons for the shortage of domestic waste aluminum supply is that the high price inventory before the festival is still the main source of goods, which leads to the sale of goods in the market. Second, there are fewer scavengers at the bottom of the market, and the new source of cheap goods is relatively limited. In the phase of rising aluminum prices, the price of waste aluminum has risen rapidly. However, as for the import of waste aluminum, due to the almost disappearance of export orders, a large number of waste aluminum imported by processing trade has accumulated. Under the pressure of high inventory, recycled aluminum enterprises are forced to seize the domestic market at a low price. The import of waste aluminum from the approval system makes the imported waste aluminum unable to circulate smoothly in the market, and will eventually enter the country in the form of finished aluminum alloy ingots, which does not alleviate the shortage of domestic waste aluminum supply. It is expected that under the high aluminum price, if the downstream order is not good, can not accept the price increase, then the recycled aluminum enterprises using domestic waste aluminum will be forced to reduce production or stop production.

April 20 SMM aluminum alloy ADC12 price

Waste aluminum market looting, monk more meat less waste aluminum daily price increase of 300 yuan / ton, broken raw aluminum price is generally more than 10,000, it is still difficult to find a truckload of goods. Affected by this, even if the recycled aluminum industry generally feedback orders are not good, the overall offer is still up 100 yuan / ton. Specific prices, large recycled aluminum enterprises generally quoted to more than 13200 yuan / ton, only the use of imported waste aluminum enterprises in Guangdong generally have a smaller price increase, the quotation is still around 13000 yuan / ton. Small and medium-sized factories, the price rose to 12700 yuan / ton, traders feedback Friday a small number of 12600 yuan / ton orders suppliers even broke the order. At present, the domestic recycled aluminum ADC12 price mainly lies in the contradiction between the weak consumption and the rising aluminum price. Recently, the most prominent contradiction is that due to the near disappearance of export orders, recycled aluminum enterprises using imported waste aluminum are forced to rush orders at low prices and the cost of enterprises using domestic waste aluminum is high because of the shortage of domestic waste aluminum supply. the recent rise in aluminum prices has closed the window for recycled aluminum enterprises to use A00 aluminum, exacerbating the contradiction. If downstream demand can not absorb the price increase, recycled aluminum enterprises are likely to reduce the purchase of raw materials, the consumption of their own inventory is forced 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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