Market sentiment remains cautious yet constructive — expect price stability with potential upside on tight scrap & supply-side risks – 06 December 2025
Given constrained primary metal availability, rising scrap demand, and policy/tariff headwinds in scrap-export regions, many analysts anticipate aluminium (primary + secondary) will stay firm or see upward pressure in the medium term. (Market commentary as of early December 2025) alcircle+1
Summary :
On Thursday, spot primary aluminium prices rose significantly from the previous trading day, with SMM A00 aluminium closing at RMB 22,020 per tonne, and the aluminium scrap market followed the increase. Entering December, downstream demand for aluminium scrap showed clear divergence. Demand for scrap used in cast aluminium alloys remained stable with a slight increase, providing more support for consumption.
In Henan, enhanced year-end environmental protection inspections and transport restrictions affected delivery efficiency. Meanwhile, some scrap utilisation enterprises reported high inventories of extrusion scrap accumulated during the peak season, with insufficient orders on hand to hedge raw material inventories, leading to a temporary slowdown in the procurement of extrusion scrap. Yesterday, baled UBC was quoted at RMB 16,400-16,900 per tonne (ex-tax), and shredded aluminium tensile scrap (priced based on aluminium content) was quoted at RMB 18,400-18,900 per tonne (ex-tax).
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