Primary aluminum sees slight correction, aluminum scrap prices largely stable [Daily Review of Aluminum Scrap]

SMM News on June 23:

Today, spot primary aluminum prices fell by 70 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,650 yuan/mt, and aluminum scrap market prices pulled back overall. Currently in the traditional off-season, downstream scrap utilization enterprises are experiencing weak order releases, with procurement mainly driven by immediate needs.

Today, the concentrated quotes for baled UBC aluminum scrap range from 15,300 to 15,800 yuan/mt (tax not included), while the concentrated quotes for shredded aluminum tense scrap range from 15,800 to 17,300 yuan/mt (tax not included). By region, Shanghai, Jiangsu, Shandong, Henan, and other places closely track aluminum prices, with price adjustments ranging from 50 to 100 yuan/mt. In Anhui, Foshan, Guizhou, and other places, price adjustments lag behind aluminum prices, remaining unchanged from yesterday.

Considering the difficulty in actual shipments, aluminum scrap suppliers tend to adopt a cautious wait-and-see attitude when adjusting prices amid rising aluminum prices. This week, the aluminum scrap market is expected to continue the pattern of "fluctuating at highs with differentiation among varieties," maintaining an overall strong trend. Due to persistent supply shortages, aluminum tense scrap prices exhibit significant resilience, with shredded aluminum tense scrap (tax not included) fluctuating within the range of 15,800 to 17,400 yuan/mt, showing relatively limited declines. Baled UBC aluminum scrap is expected to experience a mild pullback to 15,200 to 15,600 yuan/mt (tax not included), with a potential weekly decline of 100 to 150 yuan/mt. Regional price differences will further widen: east China regions (Shanghai, Shandong) may see daily price adjustments of up to 200 yuan/mt due to the influence of primary aluminum price linkage and policy disruptions, resulting in significant fluctuations. Inland provinces (Jiangxi, Hubei, etc.) may lack the momentum to follow price increases due to supply and demand differentiation and delayed price adjustments, potentially leading to a further expansion of price differences.

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