Aluminum prices fluctuate rangebound, while aluminum scrap is largely stable [Daily Review of Aluminum Scrap]

SMM May 26 News:

Today, spot primary aluminum prices fell by 20 yuan/mt from the previous trading day. SMM A00 spot prices closed at 20,350 yuan/mt, with aluminum scrap market prices fluctuating at highs. As the off-season in June approaches, downstream processing enterprises are experiencing weak order releases, with procurement mainly driven by immediate needs. Today, the centralized quotes for baled UBC aluminum scrap range from 15,300 to 15,900 yuan/mt (tax not included), while the centralized quotes for shredded aluminum tense scrap range from 15,800 to 17,300 yuan/mt (tax not included). Regionally, prices in Hubei, Guizhou, Anhui, and other places remained stable, with no overall adjustments made. Other regions, such as Shanghai, Jiangsu, Henan, and Shandong, closely tracked aluminum prices, with price adjustments ranging from 0 to 50 yuan/mt.

In the short term, aluminum scrap market prices are expected to continue fluctuating at highs. The tight supply situation for aluminum tense scrap is unlikely to change, providing solid price support. Wrought aluminum alloy scrap will continue to fluctuate rangebound with primary aluminum, but the accumulated risk of a high-level correction in primary aluminum prices, combined with weak demand during the off-season, will limit upside room. For downstream aluminum scrap-using enterprises, the ongoing struggle between cost pressure and weak end-user orders may keep operating rates low. The narrowing of import losses may partially alleviate supply pressure, but the transmission effect will be limited. Regional and product price differences may further diverge. Tight supply in South China and other regions may support localized price increases, while prices in regions with weak demand will face downward pressure.

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