SMM August 24 News:
Today, SMM A00 spot aluminum prices closed at 23,800 yuan/mt, up 120 yuan/mt MoM from the previous trading day. China's aluminum scrap market prices generally held steady with a wait-and-see attitude, with a slight uptick. Against the backdrop of continuously rising primary aluminum prices, aluminum scrap price fluctuations were relatively limited, and the price transmission mechanism was hampered. However, with primary aluminum prices recently pulling back, the resilience of aluminum scrap provided an opportunity for the narrowing of the price spread between primary aluminum and scrap. In terms of price spreads, on August 24, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was 2,305 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was 1,084 yuan/mt. On the import and export front, according to SMM customs data, China's total aluminum scrap imports in July 2026 were approximately 119,600 mt, down MoM from 133,000 mt in June, mainly due to the inversion of the price spread between Chinese and overseas markets and shipment delays in the earlier period, keeping supply of high-quality scrap from outside China at low levels. Affected by the UAE's ban on aluminum scrap exports and the EU's tariff hikes, the contraction effect of supply from Europe and the Middle East continued to manifest, further consolidating Southeast Asia's position as a major supplementary source.
The aluminum scrap market is expected to maintain a narrow sideways consolidation pattern this week, with demand suppressed and costs providing a floor. Currently in the tail end of the traditional off-season, downstream end-user orders are unlikely to see a substantial surge. Scrap utilization enterprises continue their strategy of purchasing as needed, with a cautious purchasing atmosphere, and the pre-peak season effect is not yet significant. Enterprises need to wait and see for subsequent order intake. The main trading range for shredded aluminum tense scrap (priced based on aluminum content) is expected to operate around 19,900-20,700 yuan/mt.
