Aluminium prices remained high and fluctuated in March

SHANGHAI, Apr 21 (SMM) – Aluminium prices remained high and fluctuated in March. A00 aluminium spot prices reached a high level of 17,760 yuan/mt, mainly traded between 17,000-17500 yuan/mt. On the scrap aluminium, due to fierce competition in the auto industry, a significant increase in vehicle prices was asbsent. In previous years, auto parts have always faced continuous price reduction requirements. Nowadays, the high-level aluminium prices are not well transmitted due to the sharp increase in raw material costs. In addition, cost of automobiles has expanded, further increasing the cost pressure of auto OEMs, and it will take time for high aluminium prices to be passed through. The main contradiction in the market shifted from insufficient supply before the holiday to weak demand. However, it should be noted that the supply of scrap aluminium is still significantly reduced due to import restrictions amid weak supply and demand. Imported aluminium scrap declined post-holiday. As the import window remained close, aluminium alloy ingots imports also continued to decrease. Therefore, it is expected that after the relative stability of aluminium prices in the later period, the secondary aluminium market will resume active. The price gap of refined aluminium and scrap aluminium will shrink again, while transactions are not smooth in the near term and the buyers and sellers will make mutual concessions, which will widen the price difference in the short term. The replacement of primary aluminium by taint increased amid firm aluminium prices, and transmission of high aluminium prices at tense side was slower, which led to the raid increase of taint prices and the slower increase of tense prices.