Aluminum prices plummet! The overall aluminum scrap market follows the decline [Daily Review of Aluminum Scrap]

SMM News on July 14:

Today, the spot price of primary aluminum fell by 320 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,470 yuan/mt, and the overall aluminum scrap market followed the decline. In the current traditional off-season, downstream scrap utilization enterprises have seen weak order releases, with procurement mainly driven by immediate needs.

Today, the centralized quoted price for baled UBC aluminum scrap ranges from 15,150 to 15,650 yuan/mt (tax-exclusive), while the quoted price for shredded aluminum tense scrap ranges from 15,800 to 17,300 yuan/mt (tax-exclusive). By product, baled UBC aluminum scrap prices fell by 250 yuan/mt compared to last Friday, basically following the decline in aluminum prices. By region, Shanghai, Jiangsu, Shandong, and other places closely followed aluminum price movements, with price adjustments ranging from 200 to 300 yuan/mt. In Hunan, Guangdong, Jiangxi, Anhui, and other places, price adjustments lagged behind aluminum prices, with adjustments ranging from 100 to 200 yuan/mt. According to feedback from secondary aluminum enterprises, secondary aluminum alloy prices are currently low. Although scrap recycling is a challenge, due to poor operational conditions, the upside room for prices is also limited.

It is expected that the aluminum scrap market will continue to fluctuate at highs this week, with product differentiation and regional differences persisting. Shredded aluminum tense scrap is expected to maintain price resilience due to strong supply constraints, with prices fluctuating rangebound within 15,500 to 17,000 yuan/mt. Baled UBC aluminum scrap, constrained by weak demand during the off-season, faces significant downward pressure, with prices possibly dropping to 15,000 to 15,500 yuan/mt. Regionally, east China is expected to continue closely following primary aluminum price fluctuations, with daily price adjustments possibly expanding to 150 to 200 yuan/mt. In some inland and southern provinces (such as Jiangxi, Hunan, Guizhou, Guangdong), due to price adjustment lag and local supply and demand factors, the momentum for price increases may be insufficient, and price spreads may further widen.

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