SMM, July 1:
Today, the spot price of primary aluminum remained unchanged from the previous trading day. SMM A00 aluminum ingot closed at 20,780 yuan/mt, while aluminum scrap market prices remained stable 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 centralized quoted price for baled UBC aluminum scrap ranges from 15,300 to 15,800 yuan/mt (tax not included), while the centralized quoted price for shredded aluminum tense scrap ranges from 15,800 to 17,300 yuan/mt (tax not included). By product, baled UBC aluminum scrap prices decreased by 100 yuan/mt compared to yesterday, but there are also cases where some regions, facing difficulties in material collection, choose to increase prices against the market trend for recycling.
In terms of price spreads, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan increased by 20 yuan/mt from last Friday to 1,756 yuan/mt, while the price spread for bare bright aluminum wire in Jiangsu decreased by 273 yuan/mt from last Friday, reverting to 653 yuan/mt.
Considering the actual difficulty in shipping goods, aluminum scrap suppliers are adopting a cautious 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. Shredded aluminum tense scrap, supported by tight supply, is expected to show strong price resilience and fluctuate within a narrow range of 15,800 to 17,400 yuan/mt. Baled UBC aluminum scrap, on the one hand, observes the trend of aluminum prices, and on the other hand, pays attention to the degree of market supply shortage. The author believes that under the current off-season background, baled UBC aluminum scrap will still fluctuate at highs, but the upside room is relatively limited.
