Aluminum Scrap Follows Primary Aluminum Surge, Market Purchase Sentiment Remains Sluggish [Aluminum Scrap Daily Review]

SMM March 20: Spot primary aluminum rose 2,200 yuan/mt from the previous trading day, with SMM A00 spot closing at 20,810 yuan/mt. The aluminum scrap market saw a significant increase today, but was constrained by lackluster end-user orders, leading to downstream buyers purchasing as needed. Baled UBC prices were concentrated at 15,250-16,100 yuan/mt (excluding tax), and shredded aluminum tense scrap prices were concentrated at 16,450-17,950 yuan/mt (excluding tax). In the short term, the weak supply and demand situation for domestic aluminum scrap is unlikely to see significant improvement. With both primary and scrap aluminum prices fluctuating at highs, downstream buyers will only purchase as needed, and aluminum scrap prices may fluctuate rangebound following primary aluminum.