SMM, May 14:
Today, spot primary aluminum prices rose by 200 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,210 yuan/mt. Overall aluminum scrap market prices increased. As we enter the mid-to-late May period, with the transition between the off-season and peak season, downstream processing enterprises are experiencing weak order releases, with procurement mainly driven by immediate needs.
Today, the concentrated quotes for baled UBC aluminum scrap range from 15,200 to 15,800 yuan/mt (tax not included), while the concentrated quotes for shredded aluminum tense scrap range from 15,850 to 17,350 yuan/mt (tax not included). Regionally, price adjustments in Anhui, Foshan, Jiangxi, and other areas were in the range of 100-150 yuan/mt, lagging behind the adjustments in primary aluminum. In other regions, such as Shanghai, Jiangsu, and Henan, price adjustments were in the range of 150-200 yuan/mt, closely linked to aluminum prices.
In the short term, the aluminum scrap market may continue to fluctuate at highs. The tight supply situation for aluminum tense scrap products is unlikely to change, providing strong price support. Wrought aluminum alloy scrap products will still be dominated by fluctuations in primary aluminum prices, with narrow adjustments expected. Overall, during the transition period between the off-season and peak season, with weak supply and demand in the market, product differentiation and regional price differences may further emerge. It is necessary to remain vigilant about macro risks such as policy shifts by the US Fed, geopolitical conflicts, which may trigger sharp fluctuations in primary aluminum prices, or concentrated production cuts by domestic secondary aluminum enterprises, which may put pressure on aluminum scrap prices.
