SMM May 19 News:
Today, spot primary aluminum prices fell by 40 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,230 yuan/mt. Overall aluminum scrap market prices remained relatively stable. As we entered the mid-to-late May period, with the transition between the off-season and peak season, downstream processing enterprises experienced weak order releases, with procurement mainly driven by immediate needs.
Today, the centralized quoted prices for baled UBC aluminum scrap ranged from 15,250 to 15,850 yuan/mt (tax excluded), while the centralized quoted prices for shredded aluminum tense scrap ranged from 15,750 to 17,250 yuan/mt (tax excluded). Regionally, many areas such as Jiangxi, Foshan, Hubei, Guizhou, and Anhui chose to maintain their prices, with no overall adjustments made. Price adjustments lagged behind those of primary aluminum. In other regions, such as Shanghai, Jiangsu, Henan, and Shandong, price adjustments were around 50 yuan/mt, closely linked to aluminum price fluctuations.
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, the differentiation between product types and regional price differences may further emerge. It is necessary to remain vigilant about macro risks such as a policy shift by the US Fed, geopolitical conflicts, which could trigger sharp fluctuations in primary aluminum prices, or concentrated production cuts by domestic secondary aluminum enterprises, which could put pressure on aluminum scrap prices.
