Aluminum prices weaken slightly, while Jiangxi region raises recycling prices against the market trend [Daily Review of Aluminum Scrap]

SMM News on July 8:

Today, the spot price of primary aluminum fell by 40 yuan/mt compared to the previous trading day. SMM A00 spot aluminum closed at 20,600 yuan/mt, and aluminum scrap market prices generally continued to decline. Amid 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 15,250 to 15,750 yuan/mt (tax-exclusive), while the quoted price for shredded aluminum tense scrap ranges from 15,900 to 17,400 yuan/mt (tax-exclusive). By product, baled UBC aluminum scrap prices fell by 50 yuan/mt MoM from yesterday, following the decline in aluminum prices. By region, Shanghai, Jiangsu, Shandong, and other places closely followed aluminum price movements, with price adjustments ranging from 50 to 100 yuan/mt. In Guizhou and Hunan, price adjustments lagged behind aluminum price movements, with quoted prices remaining unchanged from yesterday. In Jiangxi, aluminum scrap prices were raised today, with both wrought and aluminum tense scrap prices increasing by 100 yuan/mt. This upward adjustment amid a market downturn further underscores the tightening supply of aluminum scrap. Recently, secondary aluminum scrap utilization enterprises in Fujian and Guangxi have seen a sharp decline in production due to aluminum scrap shortages, with some even halting production for maintenance.

In terms of the price difference between A00 aluminum and aluminum scrap, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan increased by 100 yuan/mt MoM from yesterday to 1,755 yuan/mt, while the price difference between A00 aluminum and mechanical casting aluminum scrap in Shanghai decreased by 12 yuan/mt MoM from yesterday to 1,830 yuan/mt.

This week, the aluminum scrap market is expected to hover at highs, with cautious price adjustments. 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 prices may continue to decline under off-season demand pressure, possibly dropping to the 15,200 to 15,700 yuan/mt range. Subsequent developments will require close attention to changes in raw material circulation and signals of recovery in terminal orders.

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