Falling Aluminium Scrap and Silicon Prices Weigh on ADC12 Prices

SHANGHAI, Mar 31 (SMM) - The tight supply of aluminium scrap has eased in March, but traders were reluctant to sell due to falling aluminium prices. Coupled with bullish market outlook, traders picked up goods actively while delivered with caution. However, with the rebound of aluminium prices, traders were more active in shipment. The price spread between primary aluminium and aluminium scrap has widened in March, hence the cost pressure of secondary aluminium plants eased. In terms of silicon, the prices of above-standard #553 silicon metal fell 1,100 yuan/mt or 6% as of March 30, which drove the ADC12 prices to decrease 40-60 yuan. On the whole, the decline in aluminium scrap and silicon metal weighed on the cost support for ADC12 prices.