Key Moments
- Average #6063 aluminum scrap in Guangdong rose 5.9 Per Cent from end-February to RMB 19,750 per tonne (USD 2,872 per tonne) on March 9, the highest since January 2023.
- China’s composite primary aluminum price reached RMB 25,179 per tonne on the same day, a three-year high and 7.5 per cent above end-February levels.
- Despite the price surge, February output of secondary aluminum alloys among 158 smelters fell to 226,600 tonnes, a six-year low according to Mysteel.
Spot Prices Surge on Rising Optimism
On March 9, the domestic market for #6063 aluminum scrap in South China’s Guangdong province saw a sharp increase, with the average price for locally generated material reaching RMB 19,750 per tonne (USD 2,872 per tonne). Mysteel reported that this represented a 5.9 Per Cent gain from the end of February and marked the highest level since January 2023.
For market participants seeking deeper forward guidance, the article highlighted the availability of an exclusive report titled “Global ALuminium Industry Outlook 2026” covering the global aluminum value chain outlook for 2026.
Primary Aluminum Hits Multi-Year Peak
On the same date, Mysteel assessed China’s composite primary aluminum price at RMB 25,179 per tonne, inclusive of the 13 per cent value-added tax. This price stood 7.5 per cent above end-February and represented a three-year high.
Middle East Conflict Fuels Supply Concerns
The military conflict in the Middle East since late February has disrupted global maritime routes and raised concerns about the reliability of bulk commodity supplies, including nonferrous metals. According to the report, these developments provided additional support to primary aluminum prices as market participants reacted to heightened supply risk.
Futures Market Mirrors Bullish Tone
Stronger sentiment was also visible in China’s derivatives market. The most actively traded aluminum futures contract for April delivery on the Shanghai Futures Exchange settled at RMB 24,880 per tonne on March 10. Mysteel noted that this closing level was 5 per cent higher than the settlement price recorded on February 27.
Spot and Futures Price Snapshot
| Market / Product | Date | Price | Change vs. Reference Period | Additional Detail |
|---|---|---|---|---|
| Domestically-generated #6063 aluminum scrap – Guangdong | March 9 | RMB 19,750 per tonne (USD 2,872 per tonne) | +5.9 Per Cent vs. end-February | Highest since January 2023 |
| China composite primary aluminum (including 13 per cent VAT) | March 9 | RMB 25,179 per tonne | +7.5 per cent vs. end-February | Three-year high |
| Shanghai Futures Exchange most-traded April aluminum contract | March 10 | RMB 24,880 per tonne | +5 per cent vs. February 27 settlement | Futures reflect bullish sentiment |
Demand and Production Fundamentals Remain Weak
Despite the sharp upswing in prices and sentiment, physical market conditions for aluminum scrap in China have remained soft. Mysteel’s survey indicated that domestic demand for aluminum scrap is still tepid, with production at secondary aluminum producers stuck at relatively low levels.
In the week from February 27 to March 5 – the second week following the Chinese New Year holiday – secondary aluminum billet production at 82 Chinese smelters tracked by Mysteel totalled only 5,400 tonnes. This output was down by 59 Per Cent compared with the corresponding week after the previous year’s Chinese New Year period.
For February as a whole, Mysteel reported that total secondary aluminum alloy production among 158 Chinese smelters dropped to 226,600 tonnes, the lowest monthly volume in six years.
Additional Notes
The article also referenced related coverage under the headline: “Also Read: India: Aluminium scrap import prices climb up w-o-w; UAE port activity hit by US-Iran conflict.”
It further noted a commercial message: “Don’t miss out- Buyers are looking for your products on our B2B platform.”
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