SMM, October 9:
Today, SMM A00 aluminum prices closed at 23,650 yuan/mt, down 110 yuan/mt WoW from the previous trading day. Aluminum scrap prices showed regional divergence, with Jiangxi, Foshan, Hunan, Anhui, and Hubei holding prices steady today. In terms of price spreads, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan stood at about 2,483 yuan/mt, while the price difference between A00 aluminum and shredded aluminum tense scrap was around 1,206 yuan/mt. After the National Day holiday, the aluminum scrap market continued to hold up well. On the supply side, aluminum scrap yards have all resumed operations, leading to an increase in material release. However, recycling policies continue to constrain liquidity, and the tight invoice supply is unlikely to ease in the short term, keeping supply tight and providing ongoing support for prices. On the demand side, as the traditional peak consumption season for cast aluminum alloy gradually kicks in, enterprises are accelerating order-taking and procurement pace. Under the dual-tight supply-demand conditions, price support for aluminum tense scrap is expected to strengthen further. Demand for wrought aluminum alloy remains moderate, with relatively ample in-factory inventory. However, with tax audits limiting supply, aluminum scrap supply is expected to decline, gradually opening a channel for price increases. That said, current peak-season demand release remains relatively mild, and post-holiday actual order fulfillment still requires close monitoring.
