SMM Outlook for Aluminium Scrap Market in May

Published: May 09, 2022 09:52 (GMT+8)

Source: SMM

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SHANGHAI, May 9 (SMM) - From a local perspective, the local government of Linyi, Shandong, has strict control over freight transport since April in order to contain the spread of the pandemic, and truck drivers are also unwilling to travel to this region as they are worried about being quarantined. As a result, aluminium scrap supply declined sharply. However, after the Ministry of Transport issued a document on April 18 asking all regions to allow freight drivers who meet requirements to pass through, truck drivers responded quickly and became more willing to travel. In this context, aluminium scrap shipments increased significantly last week.

The impact of the pandemic on transportation has eased in many regions, but transportation in some areas is still hindered. Aluminium scrap recyclers are not very optimistic about the market outlook in May, citing lower prices and demand, as well as inflows of non-standard ADC12 secondary aluminium alloy. SMM expects transactions in aluminium scrap market to decline in May.

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