SMM, January 16:
Today, spot primary aluminum rose by 180 yuan/mt compared to the previous trading day, with SMM A00 spot price closing at 20,200 yuan/mt. Aluminum scrap market quotations mainly followed the upward trend. In the short term, the fundamentals remain tight on the supply side, and reverse substitution of primary aluminum still exists. Currently, suppliers have reduced their enthusiasm for shipments, as most small and medium-sized enterprises in downstream sectors have entered the holiday period, while large enterprises primarily maintain stable long-term contract supplies. Overall, pre-holiday stockpiling enthusiasm in the downstream market is low.
Today, concentrated quotations for baled UBC aluminum scrap were at 14,850-15,700 yuan/mt (excluding tax), and for shredded aluminum tense scrap at 16,350-17,850 yuan/mt (liquid aluminum, excluding tax).
As the Chinese New Year holiday approaches, traders exhibit a reluctance to sell, some small factories have gradually started their holidays, and market supply has tightened, leading to average overall transactions. In the short term, the price difference between primary metal and scrap is expected to fluctuate rangebound.
