Aluminum Scrap Imports Decline Again, China Prices Follow Cautiously [Aluminum Scrap Daily Review]

SMM, August 20 –

Today, SMM A00 spot aluminum prices closed at 23,670 yuan/mt, down 230 yuan/mt from the previous trading day. Domestic aluminum scrap market prices generally followed the decline, with some regions that had adopted a wait-and-see approach yesterday catching up with the drop today. Against the backdrop of persistently rising primary aluminum prices, the fluctuation range of aluminum scrap was relatively limited, and the price transmission mechanism was hindered. However, with primary aluminum prices pulling back recently, the price resilience of aluminum scrap provided an opportunity for narrowing the price spread between primary aluminum and scrap. On August 20, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was 2,360 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap in Foshan was 1,150 yuan/mt. In terms of imports and exports, according to SMM customs data, China's aluminum scrap imports totaled approximately 119,600 mt in July 2026, down MoM from 133,000 mt in June. This was mainly due to the previous inversion of price spreads between Chinese and overseas markets and shipping schedule delays, with supplements of high-quality scrap from outside China remaining low. Affected by the UAE's ban on aluminum scrap exports and the EU's tariff hike policy, the contraction effect of supplies from Europe and the Middle East continued to show, further consolidating Southeast Asia's position as a major supplementary source.

It is expected that next week, the aluminum scrap market will continue to see a narrow range consolidation pattern under demand suppression and cost support. Currently, it is at the tail end of the traditional off-season, making it difficult for downstream end-user orders to see a substantial surge. Scrap utilization enterprises continue to adopt a purchasing-as-needed strategy, with a cautious procurement atmosphere, and the pre-season effect is not yet significant. Enterprises still need to wait and see for subsequent order intake. Shredded aluminum tense scrap (priced based on aluminum content) is expected to mainly range between 19,900-20,700 yuan/mt.