SMM July 17:
Spot primary aluminum prices rose slightly by 50 yuan/mt from the previous trading day, with SMM A00 aluminum ingot prices closing at 20,570 yuan/mt, while the aluminum scrap market remained flat overall. During the traditional off-season, downstream scrap utilization enterprises saw weak order releases and maintained rigid demand-based procurement.
Baled UBC was mainly quoted at 15,200-15,700 yuan/mt (ex-tax), and shredded aluminum tense scrap was mainly quoted at 15,900-17,400 yuan/mt (ex-tax).
According to feedback from secondary aluminum alloy enterprises, secondary aluminum alloy prices remained sluggish. Although scrap recycling posed challenges, constrained by poor operating rates, upside room for prices was also relatively limited.
The aluminum scrap market is expected to continue hovering at highs this week, with persistent product differentiation and regional disparities. Shredded aluminum tense scrap, strongly supported by tight supply, is likely to maintain price resilience, fluctuating rangebound within 15,500-17,000 yuan/mt. Baled UBC, pressured by weak off-season demand, faces significant downward pressure, with prices potentially dropping to 15,000-15,500 yuan/mt.
