SHANGHAI, May 18 (SMM) – The Linyi East China Nonferrous Metals City in Shandong province saw a total aluminium scrap flow of 10,625.44 mt, a decrease of 1760.59 tons or 14.21% compared with the previous week. The flow of copper scrap and stainless steel scrap in the Metals City both rose from a week ago, up 6.39% and 12.01% respectively. It can be seen that the impact of transportation restrictions on trading has weakened greatly.
According to recyclers, most small traders have been optimistic about the future aluminium prices as the weekly aluminium prices rose, hoping to expand their profits or make up for previous losses. Therefore, they have reduced the shipments while waiting for subsequent price hike, which also led to a reduction in the upstream supply of the scrap. In terms of aluminium tense, downstream consumption gradually improved, and orders from alloy factories also increased, improving market demand outlook. But the increase in trading volume was not obvious.
Aluminium prices rose 400 yuan/mt this Monday, and scrap prices followed in a timely manner. Aluminium taint prices added 300 yuan/mt, while increased less in some places due to an early price hike over the weekend, Then on Tuesday and Wednesday, aluminium prices dropped minimally, and scrap prices did not follow the decline. As such, the spread between aluminium and aluminium scrap expanded, hence it is expected that the total flow in the Metals City will not change much.