Tax invoice restrictions limit raw material circulation, and the price difference between A00 aluminum and aluminum scrap narrows again [Aluminum Scrap Daily Review]

SMM, September 22:

Today, SMM A00 aluminum prices closed at 24,270 yuan/mt, down slightly by another 50 yuan/mt from the previous trading day. Aluminum scrap market prices were mostly stable with a wait-and-see sentiment. In terms of price spreads, on September 22, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was about 2,512 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was about 1,291 yuan/mt. Supply side, the tight raw material supply pattern remained unchanged, and the scarcity of compliant, invoiced aluminum scrap continued to rise. Notably, tax inspections in central China continued to escalate, and the sharp drop in regional aluminum scrap supply will significantly disrupt aluminum scrap circulation. Demand side, the cast aluminum alloy "September peak season" fell short of expectations, with demand yet to see substantial volume growth. End-user orders improved only slightly from the off-season, without concentrated restocking. Demand for wrought aluminum alloy was moderate, and in-factory aluminum scrap inventory was relatively ample. Aluminum scrap market is expected to continue consolidating on a strong note. Supply side, the impact of tax inspections continued to spread. If aluminum scrap yards slow down shipments, circulating supply will tighten again, providing strong support for aluminum scrap prices. Going forward, focus will remain on the chain reactions of tax inspections across the aluminum scrap industry chain and changes in orders at scrap utilization enterprises.