SMM, April 30:
Today, spot primary aluminum prices rose by 40 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 20,060 yuan/mt. The overall aluminum scrap market prices followed the upward trend of primary aluminum. As the traditional peak season of "Golden March, Silver April" nears its end, end-users are releasing new orders sluggishly, and downstream processing enterprises are showing increased risk-averse sentiment, maintaining purchasing as needed for raw materials.
Today, the concentrated quotes for baled UBC aluminum scrap range from 15,050 to 15,650 yuan/mt (tax excluded), while the concentrated quotes for shredded aluminum tense scrap range from 15,850 to 17,350 yuan/mt (tax excluded). By product, the supply of wrought aluminum alloy scrap products such as bare bright aluminum wire and shredded wrought aluminum alloy scrap remains tight, with price adjustments ranging from 50 to 100 yuan/mt. Shredded aluminum tense scrap prices have generally increased by 100 to 200 yuan/mt, influenced by the pre-holiday stockpiling of downstream scrap utilisation enterprises.
In terms of price differences between A00 aluminum and aluminum scrap, the price difference between A00 aluminum and mechanical casting aluminum scrap in Shanghai narrowed by 14 yuan/mt to 1,832 yuan/mt compared to the previous trading day, while the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan significantly narrowed by 70 yuan/mt to 1,589 yuan/mt.
In the short term, the aluminum scrap market is likely to maintain a pattern of fluctuating at highs. However, if primary aluminum experiences strong volatility due to macro factors (such as US Fed policies, geopolitical conflicts), or if domestic secondary aluminum enterprises collectively cut production, aluminum scrap prices may face periodic pressure.
