A00 fluctuates rangebound, aluminum scrap market consolidates at high levels [Daily Review of Aluminum Scrap]

SMM News on July 15:

Today, spot primary aluminum prices saw a slight rebound of 40 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,510 yuan/mt, with the overall aluminum scrap market experiencing a significant increase. Currently in the traditional off-season, downstream scrap utilization enterprises are facing weak order releases, with procurement mainly driven by immediate needs.

Today, the centralized quoted price for baled UBC aluminum scrap ranges from 15,200 to 15,700 yuan/mt (tax not included), while the centralized quoted price for shredded aluminum tense scrap ranges from 15,900 to 17,400 yuan/mt (tax not included). By product, baled UBC aluminum scrap prices rebounded by 50 yuan/mt compared to yesterday, generally following the increase 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 Hunan, Guangdong, Anhui, and other regions, price adjustments lagged behind aluminum price movements, with quoted prices remaining unchanged from yesterday. According to secondary aluminum enterprises, the current secondary aluminum alloy prices are low. Although scrap recycling is challenging, due to poor production starts, the upside room for prices is also limited.

The price difference between A00 aluminum and mechanical casting aluminum scrap in Shanghai narrowed by 14 yuan/mt compared to yesterday, reaching 1,848 yuan/mt. The price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan widened by 40 yuan/mt compared to yesterday, reaching 1,675 yuan/mt.

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 its price resilience due to strong supply constraints, with prices likely to fluctuate rangebound within the 15,500 to 17,000 yuan/mt range. Baled UBC aluminum scrap, constrained by weak demand during the off-season, faces significant downward pressure, with prices possibly dropping to the 15,000 to 15,500 yuan/mt range.

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