SHANGHAI, Dec 23 (SMM) - The domestic A00 aluminium spot prices were on the rise in November, and stood at 18,970 yuan/mt as of the month-end, up by 930 yuan/mt or 5.16% on month. The monthly average price was 18,727.27 yuan/mt. The average operating rate across the domestic aluminium downstream processing sectors in November kept falling. In particular, the average operating rate of secondary aluminium enterprises slipped sharply to 51.1%, weighing on the demand for aluminium scrap. According to the latest customs data, China imported 126,600 mt of aluminium scrap in November 2022, a year-on-year decrease of 14.8% and a month-on-month decrease of 16.08%. Imports in the first 11 months of 2022 totalled 1.39 million mt, an increase of 59.0% on the year.
In November, aluminium scrap imports by Guangdong province under general trade dropped by 18,200 mt MoM to 80,400 mt, accounting for 63.51% of the total imports, while imports under feeding processing trade declined by 400 mt MoM to 7,700 mt, accounting for 6.08% of the total. Aluminium scrap imports by Zhejiang province under general trade stood at 23,600 mt (down by 800 mt on the month), accounting for 18.64% of the total imports, while imports under feeding processing trade were 1,100 mt (down by 400 mt on the month), accounting for 0.87% of the total. Aluminium scrap imports by other regions amounted to 14,200 mt, which was 4,100 mt lower than those in October and accounted for 11.22% of the total.
On the whole, China's aluminium scrap imports in November fell steeply on a monthly basis, which was driven by weaker demand of downstream enterprises and rising aluminium prices. In December, the operating rates of leading secondary aluminium plants continued to inch lower, and downstream scrap users were reluctant to restock with the upcoming Spring Festival holiday. Therefore, it is estimated that the imports of aluminium scrap in December might extend the fall.
