Aluminum Prices Rebound, Regional Adjustments to Aluminum Scrap Prices Vary [Daily Review of Aluminum Scrap]

SMM May 28 News:

Today, spot primary aluminum prices fell by 150 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,350 yuan/mt. The aluminum scrap market saw varied price adjustments, but overall, prices continued to fluctuate at highs. With the off-season in June approaching, downstream processing enterprises are experiencing weak order releases, and procurement is mainly driven by immediate needs.

Today, the concentrated quotes for baled UBC aluminum scrap range from 15,250 to 15,850 yuan/mt (tax not included), while the concentrated quotes for shredded aluminum tense scrap range from 15,700 to 17,200 yuan/mt (tax not included). Regionally, areas such as Shanghai, Jiangsu, Henan, and Shandong are closely linked to aluminum prices, with price adjustments ranging from 100 to 150 yuan/mt. However, the overall price adjustment range still lags behind that of primary aluminum. In Jiangxi, Hunan, Hubei, Anhui, and other regions, prices remain unchanged, with quotes staying flat compared to yesterday.

In the short term, aluminum scrap market prices are expected to continue fluctuating at highs. The tight supply of 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 cumulative risk of high-level corrections in primary aluminum prices, combined with weak demand during the off-season, limits upside room. For downstream aluminum scrap-using enterprises, cost pressures continue to clash with weak end-user orders, potentially keeping operating rates low. Narrowing import losses may partially alleviate supply pressures, but the transmission effect will be limited. Regional and product-specific price spreads 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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