Tight aluminium scrap supply in China due to shrinking scrap import quotas in the country have led to more expensive production costs for secondary aluminium ingots in the region. That has prompted market participants in Asia to seek potentially cheaper metal from as far away as Europe, driving demand higher there.
China’s environment ministry issued the latest import quota for an additional 9,844 tonnes of aluminium scrap imports for December
, Fastmarkets reported on Wednesday December 4 - down from 13,770 tonnes in the previous quota. This, in turn, was less than the 44,935 tonnes issued in October.
Fastmarkets assessed the aluminium ingot ADC 12 spot (MJP), cfr Japan price at $1,630-1,680 per tonne on December 4, compared with $1,620-1,650 per tonne the week before and bringing it to its highest since May 15, 2019.