Aluminum prices retreat, aluminum scrap market follows suit [Daily Review of Aluminum Scrap]

SMM June 30 Report:

Today, spot primary aluminum prices fell by 100 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 207,800 yuan/mt, and aluminum scrap market prices generally followed the decline. Amid the traditional off-season, downstream scrap utilization enterprises have seen weak order releases, with procurement mainly driven by immediate needs.

Today, the centralized quoted prices for baled UBC aluminum scrap range from 15,400 to 15,900 yuan/mt (tax-exclusive), while shredded aluminum tense scrap prices range from 15,800 to 17,300 yuan/mt (tax-exclusive). Regionally, Shanghai, Jiangsu, Shandong, Henan, and other areas closely track aluminum prices, with price adjustments ranging from 50 to 100 yuan/mt. By product, the price adjustments for baled UBC and shredded aluminum tense scrap moved in opposite directions, with shredded aluminum tense scrap prices decreasing by 100 yuan/mt WoW from last Friday.

Considering the actual difficulty in shipping goods, aluminum scrap suppliers have adopted 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 high-level fluctuations. Supported by tight supply, shredded aluminum tense scrap prices are expected to remain resilient, fluctuating rangebound within the 15,800 to 17,400 yuan/mt range. Baled UBC aluminum scrap, on the other hand, will observe aluminum price trends and the degree of market supply tightness. The author believes that under the current off-season context, baled UBC aluminum scrap prices will still fluctuate at highs, but upside room will be limited.

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