SMM, May 12:
Today, spot primary aluminum prices rose by 200 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 19,810 yuan/mt. Overall aluminum scrap market prices increased. As we enter the mid-to-late May period, with the transition between the off-season and peak season, downstream processing enterprises are experiencing weak order releases, with procurement mainly driven by immediate needs.
Today, the centralized quoted prices for baled UBC aluminum scrap range from 14,850 to 15,450 yuan/mt (tax not included), while the centralized quoted prices for shredded aluminum tense scrap range from 15,650 to 17,150 yuan/mt (tax not included). Regionally, quoted prices in Hunan, Hubei, Anhui, Jiangxi, and other regions remained unchanged. Prices in other regions, such as Shanghai, Jiangsu, Henan, etc., followed the upward trend of A00 aluminum ingot prices, with adjustments ranging from 100 to 200 yuan/mt.
In the short term, the aluminum scrap market may continue to fluctuate at highs. The tight supply situation for aluminum tense scrap products is unlikely to change, providing strong price support. Wrought aluminum alloy scrap products will still be mainly influenced by fluctuations in primary aluminum prices, with narrow adjustments expected. Going forward, it is necessary to remain vigilant about macro risks such as policy shifts by the US Fed, geopolitical conflicts, etc., which could trigger sharp fluctuations in primary aluminum prices, or concentrated production cuts by domestic secondary aluminum enterprises, which could put pressure on aluminum scrap prices.
