Primary Aluminum Continues to Decline, Price Difference Between Primary Metal and Scrap Narrows [Daily Review of Aluminum Scrap]

SMM, December 17:

Today, domestic primary aluminum prices fell below the 20,000 yuan threshold, with aluminum scrap prices mainly following the downward trend. Currently, aluminum scrap supply remains tight, and suppliers show low willingness to sell at reduced prices amid consecutive price drops, with some holding back sales. Today, SMM A00 spot aluminum closed at 19,900 yuan/mt, down 260 yuan/mt from yesterday, while domestic aluminum scrap prices followed with a decline in the range of 0-200 yuan/mt. Today's baled UBC aluminum scrap prices were adjusted down by 0-200 yuan/mt to 15,100-15,420 yuan/mt (excluding tax), and shredded aluminum tense scrap prices were lowered by 100-200 yuan/mt to 16,000-17,300 yuan/mt (liquid aluminum, excluding tax). Re-melting ingot prices also fell by 50-100 yuan/mt in line with aluminum prices. Recently, there has been an inversion in overseas re-melting ingot imports, and future port arrivals of re-melting ingots are expected to decline. In the short term, as north China enters winter, some yards are seeing reduced purchase volumes. Meanwhile, constrained by port clearance issues and the inverted price spread between domestic and overseas markets, the replenishment of imported aluminum scrap remains limited, leading to continued tight circulation of aluminum scrap. Under undersupply conditions, the short-term decline in aluminum scrap prices is limited, and the price difference between primary metal and scrap has narrowed.

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