The most-traded SHFE aluminum contract for foundry aluminum rises to the 20,000 mark, intensifying production pressure amid fierce competition for aluminum scrap [Daily Review of ADC12 Prices]

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SMM reported on July 10:

On the futures market, the most-traded cast aluminum alloy 2511 futures contract opened at 19,820 yuan/mt today. It held up well overall, reaching a new high since its listing at 20,000 yuan/mt, with the lowest price at 19,780 yuan/mt. It finally closed at 19,940 yuan/mt, up 110 yuan/mt from the previous close, a gain of 0.55%. Trading volume was 4,446, and open interest was 8,813. Bulls mainly increased their positions during the day.

In the spot market, the SMM A00 aluminum price surged 160 yuan/mt from Wednesday to 20,820 yuan/mt today, while the SMM ADC12 price rose 100 yuan/mt to 20,100 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. The scope of production losses for enterprises has continued to expand, and manufacturers' quotes have risen one after another. Restricted by the dual constraints of raw material shortages and weakening demand, multiple 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 compete, and it is expected that the ADC12 price will maintain a weak and rangebound pattern in July.

Note: Import profit refers to real-time profit.

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