Aluminum prices adjust within a narrow range, with collective price increases reported for aluminum scrap in Jiangxi [Daily Review of Aluminum Scrap]

SMM, May 20:

Today, spot primary aluminum prices fell by 20 yuan/mt compared to the previous trading day. SMM A00 spot aluminum closed at 20,210 yuan/mt. Regional price performances in the aluminum scrap market varied significantly. As we entered late May, 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 concentrated quotes for baled UBC aluminum scrap ranged from 15,200 to 15,800 yuan/mt (tax not included), while the concentrated quotes for shredded aluminum tense scrap ranged from 15,800 to 17,300 yuan/mt (tax not included). Regionally, prices remained stable in multiple areas such as Hubei, Guizhou, and Anhui, with no overall adjustments made. Other regions, including Shanghai, Jiangsu, Henan, and Shandong, closely tracked aluminum prices, with price adjustments ranging from 20 to 50 yuan/mt. Notably, aluminum scrap prices in Jiangxi increased overall, with prices for wheel hubs removed from vehicle, scrap motorcycle wheels, and UBCs rising by 200 yuan/mt, and prices for other categories of wrought and aluminum tense scrap increasing collectively by 100 yuan/mt. This indirectly reflects a relatively severe shortage of supply in South China.
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 of varieties and regional price differences may further emerge. Subsequent attention should be paid to 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.

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