Chinese aluminum scrap consumers wait and see market
2024-04-17 12:02:25 [Print]
BEIJING (Asian Metal) 17 Apr 24 - In the past week, primary aluminum prices fell after reaching a high level, so aluminum scrap consumers waited on the sidelines. On Tuesday, mainstream prices for Chinese aluminum foundry scrap Al 93%min stood at RMB16,700-16,900/t (USD2,307-2,335/t) Ex-VAT delivered D/P, down by RMB100/t (USD13.82/t) from Monday. Insiders said that the current aluminum prices are still inflated, so they are temporarily consuming inventories and are not in a hurry to restock. They reckoned that prices for Chinese cast aluminum scrap would move down in the coming week.
A consumer in East China revealed that as the aluminum scrap price is too high, they have not refilled stocks for about ten days, and the inventory of aluminum scrap decreases from about 1,500t in early April to current about 1,000t. "On Tuesday, we intended to buy aluminum foundry scrap Al 93%min at RMB17,400/t (USD2,404/t) Inc-VAT delivered D/P, but the supplier would not sell the material at prices lower than RMB17,600/t (USD2,432/t) Inc-VAT delivered D/P. However, the price the supplier could accept was RMB17,700/t (USD2,445/t) Inc-VAT delivered D/P. We have not closed deals so far this week while last purchased 800t at RMB17,200/t (USD2,376/t) Inc-VAT delivered D/P half a month ago," the source said, adding that the price of aluminum is falling after rising to a high level, and they plan to replenish stocks when the price of aluminum falls below RMB20,000/t (USD2,763/t). They predicted that prices for Chinese cast aluminum scrap would slide in the week to come.
With an annual consumption capacity of 200,000t, the consumer consumed about 31,300t in 2023. They used about 4,400t in March and expect to use about 4,000t in April, holding about 1,000t of stocks now.
A consumer in South China indicated that the price of aluminum keeps rising in early-to-mid April, and they began to reduce the purchases of aluminum scrap. As a result, their inventory of the material decreases from about 1,100t in early April to current about 700t. "On Tuesday, a supplier offered RMB17,650/t (USD2,439/t) Inc-VAT delivered D/P for aluminum foundry scrap Al 93%min, the same as Monday. We have not closed deals so far this week while purchased 300t of aluminum foundry scrap Al 93%min Cu 2.5%min at RMB18,000/t (USD2,487/t) Inc-VAT delivered D/P late last week," the source said, adding that the price of aluminum is moving down after reaching a high level, and they plan to wait and see the market for the time being and would consider restocking when the price declines to around RMB19,800/t (USD2,736/t). They anticipated that prices for Chinese cast aluminum scrap would drop in the following week.
With an annual consumption capacity of 100,000t, the consumer consumed about 67,000t in 2023. Holding about 700t of stocks now, the consumer expects to use about 5,600t in April, down from about 6,300t in March.
A consumer in East China revealed that as the aluminum scrap price is too high, they have not refilled stocks for about ten days, and the inventory of aluminum scrap decreases from about 1,500t in early April to current about 1,000t. "On Tuesday, we intended to buy aluminum foundry scrap Al 93%min at RMB17,400/t (USD2,404/t) Inc-VAT delivered D/P, but the supplier would not sell the material at prices lower than RMB17,600/t (USD2,432/t) Inc-VAT delivered D/P. However, the price the supplier could accept was RMB17,700/t (USD2,445/t) Inc-VAT delivered D/P. We have not closed deals so far this week while last purchased 800t at RMB17,200/t (USD2,376/t) Inc-VAT delivered D/P half a month ago," the source said, adding that the price of aluminum is falling after rising to a high level, and they plan to replenish stocks when the price of aluminum falls below RMB20,000/t (USD2,763/t). They predicted that prices for Chinese cast aluminum scrap would slide in the week to come.
With an annual consumption capacity of 200,000t, the consumer consumed about 31,300t in 2023. They used about 4,400t in March and expect to use about 4,000t in April, holding about 1,000t of stocks now.
A consumer in South China indicated that the price of aluminum keeps rising in early-to-mid April, and they began to reduce the purchases of aluminum scrap. As a result, their inventory of the material decreases from about 1,100t in early April to current about 700t. "On Tuesday, a supplier offered RMB17,650/t (USD2,439/t) Inc-VAT delivered D/P for aluminum foundry scrap Al 93%min, the same as Monday. We have not closed deals so far this week while purchased 300t of aluminum foundry scrap Al 93%min Cu 2.5%min at RMB18,000/t (USD2,487/t) Inc-VAT delivered D/P late last week," the source said, adding that the price of aluminum is moving down after reaching a high level, and they plan to wait and see the market for the time being and would consider restocking when the price declines to around RMB19,800/t (USD2,736/t). They anticipated that prices for Chinese cast aluminum scrap would drop in the following week.
With an annual consumption capacity of 100,000t, the consumer consumed about 67,000t in 2023. Holding about 700t of stocks now, the consumer expects to use about 5,600t in April, down from about 6,300t in March.
