Aluminum scrap supply remains tight, strengthening cost support for secondary aluminum [Daily Review of ADC12 Prices]

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SMM reported on July 9:

On the futures market, today the most-traded cast aluminum alloy futures contract 2511 opened at 19,855 yuan/mt, with a high of 19,885 yuan/mt and a low of 19,770 yuan/mt, closing at 19,830 yuan/mt, down 20 yuan/mt from the previous close, a decrease of 0.10%. Trading volume was 2,249, and open interest was 8,571, with bulls reducing their positions mainly during the day.

In the spot market, today's SMM A00 aluminum price rose by 60 yuan/mt from Tuesday to 20,660 yuan/mt, while the SMM ADC12 price remained stable at 20,000 yuan/mt. Recently, the supply of aluminum scrap has tightened both domestically and overseas, directly leading to a significant increase in the difficulty of raw material procurement for secondary aluminum plants. Competition for "scrambling for materials" in the market has intensified, while production costs continue to rise, and the scope of production losses for enterprises continues to expand. Due to the dual constraints of raw material shortages and weakening demand, several secondary aluminum manufacturers have been forced to cut production, with some even entering a state of shutdown. Overall, strong cost support and weak demand continue to battle, and it is expected that the ADC12 price will maintain a weak and rangebound fluctuation pattern in July.

Note: Import profit refers to real-time profit

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