Aluminum prices have risen sharply, while the overall increase in aluminum scrap prices has been limited [Daily Review of Aluminum Scrap]

SMM June 27 Report:

Today, spot primary aluminum prices rose sharply by 280 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,890 yuan/mt. Aluminum scrap market prices generally followed the upward trend, but the increase was limited. Currently in the traditional off-season, downstream scrap utilization enterprises are experiencing weak order releases, with procurement mainly driven by immediate needs.

Today, the quoted prices for baled UBC aluminum scrap are concentrated in the range of 15,300-15,800 yuan/mt (tax not included), while the quoted prices for shredded aluminum tense scrap are concentrated in the range of 15,900-17,400 yuan/mt (tax not included). Regionally, Shanghai, Jiangsu, Shandong, Henan, and other regions closely followed aluminum price movements, with price adjustments ranging from 200-250 yuan/mt. Jiangxi, Foshan, and other regions lagged behind in price adjustments, with adjustments ranging from 100-200 yuan/mt depending on the product. By product, baled UBC aluminum scrap and shredded aluminum tense scrap prices rose slightly by 100 yuan/mt compared to yesterday. New wrought aluminum alloy scrap and clean tapping aluminum wire prices rose by 200 yuan/mt compared to yesterday, closely following the upward trend of primary aluminum.

In terms of the price difference between A00 aluminum and aluminum scrap, the price difference between A00 aluminum and mechanical casting aluminum scrap in Shanghai rose by 8 yuan/mt compared to yesterday, expanding to 1,848 yuan/mt. The price difference between A00 aluminum and aluminum extrusion scrap in Foshan increased by 180 yuan/mt compared to yesterday, expanding to 1,738 yuan/mt.

Considering the actual difficulty in shipping goods, aluminum scrap suppliers are adopting a cautious and wait-and-see attitude towards price adjustments amid the high-level fluctuations of aluminum prices. Next week, the aluminum scrap market is expected to continue its pattern of high-level fluctuations.

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