A00 moved sideways, aluminum scrap prices remained stable with a wait-and-see sentiment [Aluminum Scrap Daily Review]

SMM August 25 News:

Today, SMM A00 spot aluminum closed at 23,740 yuan/mt, down 60 yuan/mt from the previous trading day, while China's aluminum scrap market prices held steady in a wait-and-see stance. Against the backdrop of persistently rising primary aluminum prices, aluminum scrap fluctuations remained relatively limited, with the price transmission mechanism hindered. However, as primary aluminum corrected recently, aluminum scrap's resilience provided an opportunity for the narrowing of the price spread between primary aluminum and scrap. On the price spread front, on August 25, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was 2,255 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was 1,034 yuan/mt. On the import and export side, according to SMM customs data, China's aluminum scrap imports in July 2026 totaled approximately 119,600 mt, down MoM from 133,000 mt in June, mainly affected by the earlier inversion of price spreads between Chinese and overseas markets and shipment delays. The replenishment of high-quality overseas scrap remained low. Impacted by the UAE's ban on aluminum scrap exports and the EU's tariff hike policy, the contraction effect of European and Middle Eastern supply continued to show, further consolidating Southeast Asia's position as a major supplementary source.

It is expected that the aluminum scrap market will continue to move sideways in a narrow range this week, with demand suppressing prices and costs underpinning the market. Currently in the tail end of the traditional off-season, downstream end-user orders are unlikely to see a breakout, and scrap utilization enterprises continue to adopt a purchasing-as-needed strategy with a cautious procurement atmosphere. The pre-season effect is not yet significant, and the intake of subsequent orders for enterprises remains to be observed. The main operating range for shredded aluminum tense scrap (priced based on aluminum content) is expected to fluctuate between 19,900 and 20,700 yuan/mt.