Decline in raw material prices coupled with reduced demand leads to a drop in secondary aluminum prices [Daily Review of ADC12 Prices]

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SMM News on June 17:

On the futures market, today the most-traded cast aluminum alloy futures contract 2511 opened at 19,720 yuan/mt. In the morning session, it fluctuated at highs around the 19,800 yuan/mt level, reaching a high of 19,840 yuan/mt. In the afternoon, the futures market jumped initially and then pulled back, dropping to a low of 19,620 yuan/mt. Prices stabilized and rebounded towards the end of the session, closing at 19,780 yuan/mt, up 50 yuan/mt from the previous close, a gain of 0.25%. Trading volume was 11,085 lots, and open interest was 8,389 lots, with bears mainly reducing their positions during the day.

In the spot market, today's SMM A00 aluminum prices fell 130 yuan/mt from the previous trading day to 20,770 yuan/mt. Domestic SMM ADC12 prices dropped 50 yuan/mt to 20,000-20,200 yuan/mt, mainly due to the renewed downtrend in aluminum prices driving down the prices of secondary aluminum raw materials, coupled with insufficient new orders during the off-season and the impact of low-priced supplies on the market, jointly dragging down ADC12 prices. However, the current tight supply situation of aluminum tense scrap persists, and the cost side provides support for prices. It is expected that ADC12 prices will remain in a narrow adjustment range in the short term, and continuous attention should be paid to changes in raw material circulation and off-season demand.

In the import market, the CIF quotes for imported ADC12 remained at 2,420-2,450 US dollars/mt. The import spot price increased by 100 yuan/mt to around 19,300 yuan/mt, and the import real-time loss was in the range of 500-600 yuan/mt. The local tax-excluded quotes for ADC12 in Thailand remained stable at 82 Thai baht/kg.

Note: Import profits are real-time profits.

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