SMM

SHANGHAI, May 6 (SMM) – A00 aluminium prices fell back to around 18,350 yuan/mt after the Labour Day holiday, so did the prices of ADC12 secondary aluminium alloy, which lost 200 yuan/mt from pre-holiday levels to 18,800 yuan/mt. Demand in the secondary aluminium alloy market became even more sluggish after the holiday, with scarce transactions being heard. On the supply side, the operating rates in the secondary aluminium alloy industry continued to decrease during the week mainly because some producers were shut down for the holiday. Most of the major secondary aluminium alloy factories lowered their production during the Labour Day holiday, while small and medium-sized ones generally took a 3-day break. The overall operating rates may pick up only mildly this week. Bearish demand outlook threatens to weigh on ADC12 prices in the near term.