SMM, September 2:
Today, SMM A00 spot aluminum prices closed at 24,080 yuan/mt, edging down 30 yuan/mt from the previous trading day, while China's aluminum scrap market prices remained largely stable. In terms of price spreads, on September 2, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan stood at about 2,322 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap stood at about 1,157 yuan/mt, both holding steady WoW. With primary aluminum prices continuing to rebound, aluminum scrap fluctuations were relatively limited, and the price transmission mechanism was hindered, mainly constrained by two factors: first, the traditional peak season is about to arrive, yet downstream secondary aluminum alloy demand has not shown significant improvement; second, high inventories of wrought aluminum alloy scrap raw materials such as doors and windows in Henan and other regions have weakened the elasticity of aluminum scrap price increases. Additionally, the supply-side "reverse invoicing" policy constraints persist, and the scarcity of compliant invoiced aluminum scrap provides bottom support for aluminum scrap prices. In the short term, as the traditional off-season draws to a close, downstream scrap utilization enterprises have yet to see a notable recovery in orders, and the pre-peak season effect is not significant. Scrap utilization enterprises continue to purchase as needed and maintain low inventory strategies, showing limited acceptance of price increases, with some enterprises opting to hold steady and observe after earlier price hikes. On the import side, previously traded cargoes arriving at ports have provided some supply replenishment, but the deeper effects of the UAE ban and EU tariff hikes will continue to limit the expansion of high-quality scrap imports.
