SMM Analysis: Aluminium Prices Fluctuated Upwards and Weekly Shipments of Aluminium Scrap in Linyi, Shandong Jumped 2,000 mt

SHANGHAI, Jul 25 (SMM) - During July 18-24, the shipments of aluminium scrap at Linyi Huadong Non-ferrous Metals City Park stood at about 7,800 mt, up 2,000 mt over the previous week and up 33.64% month-on-month. The shipments of copper scrap was about 8,500 mt, down 25.61% month-on-month, and that of stainless steel scrap amounted to 7,000 mt, down 1.51% compared to a week ago. During the same period, aluminium prices gained 570 yuan/mt or 3.27% from a week ago to 17,990 yuan/mt as of last July 15. The prices of aluminium scrap rose last week amid bearish market sentiments as aluminium prices had been falling for several weeks. The prices of aluminium extrusion scrap and aluminium tense scrap increased by 400-500 yuan/mt and 200 yuan/mt respectively. On the supply side, the bearish sentiment was eased as the shipments of upstream individual investors and small traders increased slightly compared to a week ago, hence the pressure on the supply side was relieved slightly. On the demand side, the rising aluminium prices combined with the coming peak season improved the purchasing demand of downstream buyers, thus leading to an increase in the shipments at the Metals City Park. As for this week, the aluminium price fell slightly by 150 yuan/mt to 17,840 yuan/mt on July 25, but most traders at the Metals City Park did not adjust the prices of scrap aluminium. The bearish sentiment is likely to intensify as aluminium prices declined further. The traders are expected to trade cautiously this week based on downstream demand.