Aluminum prices fluctuated at high levels above 21,000 yuan/mt, with insufficient upward momentum for secondary aluminum prices.

Today, the most-traded SHFE aluminum contract continued to adjust at a high level above 21,000 yuan/mt. SMM A00 spot aluminum prices rose by 100 yuan/mt from yesterday to 21,190 yuan/mt, while secondary aluminum prices remained largely stable. In terms of domestic prices, large domestic secondary aluminum producers quoted prices at 20,400-20,600 yuan/mt, while small and medium-sized producers quoted prices at 19,800-20,000 yuan/mt. On the import side, the current overseas forward quotes for imported ADC12 remain high at around $2,500/mt, with spot prices at ports concentrated at 19,600-19,700 yuan/mt. The immediate import loss has expanded to 1,000 yuan/mt, and the import window remains closed. Today, aluminum prices rebounded slightly, but the momentum for secondary aluminum prices to follow suit was insufficient, with most prices remaining stable. Both producers and traders reported difficulties in selling, as high prices inhibited the purchasing enthusiasm of downstream die-casting plants. Moreover, the scope of downstream production cuts may continue to expand after June, making it difficult for demand to improve. In the short term, secondary aluminum prices are expected to continue to narrowly fluctuate. We need to pay attention on changes in aluminum scrap supply and consumption.