SHANGHAI, Jan 5 (SMM) - SMM A00 aluminium prices started the year on a weak note, losing 660 yuan/mt or 3.6% in three trading days. Aluminium scrap prices were not immune from the drop, either, with a decline of 200-400 yuan/mt. Lower aluminium scrap prices eased the cost pressure of billet plants. Some billet plants held their conversion margins relatively firm, while others even cut their offers in a dismal market since a growing number of downstream enterprises have already closed early for the Chinese New Year.
The conversion margins of re-melt aluminium billets in south China were 270-390 yuan/mt, versus 80-180 yuan/mt in Shandong, 180-200 yuan/mt in Hebei and Henan, 250-270 yuan/mt in Jiangxi.
With the Chinese New Year drawing closer, logistics activities have declined, slowing the transportation of aluminium scrap.