LME aluminum futures rose amid volatility, while spot secondary aluminum remained weak in its upward momentum [Daily review of ADC12 prices]

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SMM News on July 2:

On the futures market, today the most-traded cast aluminum alloy futures contract 2511 opened at 19,830 yuan/mt. The futures market overall fluctuated rangebound and moved higher, with the lowest price at 19,810 yuan/mt. In the afternoon, it reached a high of 19,860 yuan/mt and finally closed at 19,945 yuan/mt, up 60 yuan/mt from the previous close, representing a 0.30% increase. The trading volume was 5,305, and the open interest was 8,930. Bulls mainly increased their positions during the day.

In the spot market, SMM A00 aluminum prices rose by 30 yuan/mt from the previous day to 20,810 yuan/mt; the SMM ADC12 price range remained stable at 20,000-20,200 yuan/mt. Although aluminum prices rose slightly today, the secondary aluminum market struggled to catch up, and quotes generally remained stable. Currently, the circulation of aluminum scrap is tightening, increasing the difficulty for enterprises to procure raw materials; the off-season effect on the demand side is prominent, with some downstream enterprises beginning to reduce production due to high temperatures or a decline in orders, resulting in sluggish market transactions. Subject to the dual pressures of insufficient raw material supply and weakening demand, some secondary aluminum plants have already experienced short-term furnace shutdowns for maintenance or have reduced their operating rates. Overall, under the combined influence of the deepening off-season effect and cost support, it is expected that ADC12 prices will maintain a narrow fluctuation range.

In the import market, the CIF quotes for imported ADC12 remained stable at 2,450-2,480 US dollars/mt, the imported spot price was around 19,200 yuan/mt, and the immediate import loss was around 800 yuan/mt; the local tax-excluded quotes for ADC12 in Thailand were concentrated at 82-83 baht/kg.

Note: Import profit refers to real-time profit.

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