A00 rose by 200 yuan/mt today, and aluminum scrap prices followed the rise overall [Aluminum Scrap Daily Review]

SMM, July 29 –

Today's SMM A00 spot aluminum price closed at 23,400 yuan/mt, up 200 yuan/mt from the previous trading day. Aluminum scrap prices across regions generally followed the increase, rising 100-200 yuan/mt. On price spreads, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was about 2,030 yuan/mt on July 29, while the price difference between A00 aluminum and shredded aluminum tense scrap in Foshan was about 710 yuan/mt, both remaining at historically low levels. In terms of imports, according to customs data, China's aluminum scrap imports in June 2026 totaled about 132,800 mt, down for the third consecutive month from 152,000 mt in May. Cumulative data for 2026 showed imports totaling about 981,800 mt from January to June. Recently, Guangdong saw increased orders from Southeast Asia, and although the import window improved compared to earlier, new transactions were mostly concentrated in low-price resources, leaving overall spot market activity limited. Affected by the UAE's aluminum scrap export ban and the EU's tariff hike policies, the contraction in supply of high-quality imported aluminum scrap will become more evident going forward.

This week, the aluminum scrap market is expected to remain in a narrow range-bound pattern characterized by demand pressure and cost support. With the deepening off-season, downstream end-user orders are unlikely to improve materially. Scrap utilization enterprises will stick to purchasing as needed, and procurement sentiment is unlikely to recover significantly. The mainstream trading range for shredded aluminum tense scrap (priced based on aluminum content) is expected to hover around 19,800-20,500 yuan/mt. Currently, the price difference between A00 aluminum and aluminum scrap has narrowed to a historical low, significantly weakening the economic advantage of aluminum scrap over primary aluminum. If primary aluminum prices continue to decline, the substitution effect of primary aluminum for aluminum scrap will accelerate. It is necessary to closely monitor the crowding-out effect of aluminum price trends on aluminum scrap demand.