Aluminium Scrap Transaction Continued to Weaken This Week due to Repeating Pandemic

SHANGHAI, Mar 16 (SMM) - Aluminium prices were relatively stable this week, but the transaction volume shrank further partly because the market has not fully resume rationality after aluminium prices slumped last week. The repeating pandemic also seriously impacted domestic shipments, and most recyclers were less interest in making shipments.

Aluminium prices rose 20 yuan/mt to 21,900 yuan/mt on Monday, while aluminium scrap prices were stable as whole. Most scrap recyclers replied that if aluminium price hike or decrease was less than 100 yuan/mt, aluminium scrap prices would hardly change. But the entire market was sluggish amid steeply falling aluminium prices last week.

Aluminium prices dropped 170 yuan/mt to 21,730 yuan/t Tuesday. Aluminium taint scrap prices dropped 100-150 yuan/mt, while aluminium tense scrap recorded minimal changes. Pandemic prevention and control measures intensified on resurging COVID across China, and most aluminium recyclers reported no spots on hand. Meanwhile, they were not considering selling scrap inventory as they were purchased at high prices. As such, the market remained muted.

Aluminium prices added 40 yuan/mt to 21,770 yuan/mt Wednesday, and scrap prices still posted no great changes. According to recyclers in Linyi Non-Ferrous Metal Industrial Park in Shandong province, the park was running normally after the first round of nucleic acid testing. However, sports available in the market were still low, and the downstream participants were also less interest in purchasing. And if there new confirmed cases in the district where the industrial park locates, the entire part could be shut down.