SMM, April 28:
Today, spot primary aluminum prices fell by 120 yuan/mt from the previous trading day. SMM A00 aluminum ingot prices closed at 19,950 yuan/mt. The overall aluminum scrap market prices followed the decline in primary aluminum. As the peak season for downstream demand is coming to an end, orders are affected by diminishing marginal demand, and raw material purchases are maintained on an as-needed basis.
Today, the centralized quotes for baled UBC aluminum scrap range from 15,000 to 15,600 yuan/mt (tax not included), while the centralized quotes for shredded aluminum tense scrap range from 15,750 to 17,250 yuan/mt (tax not included). By product, the supply of wrought aluminum alloy scrap products, such as bare bright aluminum wire and shredded wrought aluminum alloy scrap, remains tight. The price adjustment range is 50-100 yuan/mt. In terms of the price difference between A00 aluminum and aluminum scrap, the price difference between A00 aluminum and mechanical casting aluminum scrap in Shanghai increased by 15 yuan/mt to 1,857 yuan/mt from the previous trading day, while the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan decreased by 21 yuan/mt to 1,716 yuan/mt.
In the short term, the aluminum scrap market is likely to maintain a pattern of fluctuating at highs. However, if primary aluminum experiences strong volatility due to macro factors (such as US Fed policies, geopolitical conflicts), or if domestic secondary aluminum enterprises collectively cut production, aluminum scrap prices may face periodic pressure.
