Scrap aluminium price

In the B2B scrap trade, quality is determined by the purity levels and the presence of contaminants. Buyers should categorize scrap into grades such as 6063 Extrusions, UBC (Used Beverage Cans), Tense (Mixed Cast), or Taint/Tabor (Clean Sheet). It is critical to verify that the Aluminium content meets the specified percentage (e.g., 99% or 99.7%) and that the attachment of non-metallic materials (plastics, rubber, paint) is within the agreed tolerance (usually <1%) to avoid yield loss during smelting.

Buyers must ensure suppliers adhere to the ISRI (Institute of Scrap Recycling Industries) specifications, which provide the global standard for scrap grading. Furthermore, cross-border transactions require compliance with the Basel Convention regarding the transboundary movement of hazardous waste. Ensure the supplier provides a CCIC (China Certification & Inspection Group) certificate if shipping to China, or equivalent third-party pre-shipment inspection reports to confirm the cargo is non-hazardous and environmentally compliant.

Scrap Aluminium pricing is not fixed; it is typically indexed against the LME (London Metal Exchange) or SHFE (Shanghai Futures Exchange) spot prices. Professional buyers usually negotiate a discount rate (e.g., 85%-95% of LME price) based on the scrap grade and recovery yield. It is essential to clarify if the quoted price is FOB (Free On Board) or CIF (Cost, Insurance, and Freight), as fluctuating shipping costs can significantly impact the final landed cost per ton.

The surface-to-volume ratio and the level of oxidation are key technical factors. Thin scraps like foil or finely shredded turnings have higher oxidation rates, leading to lower melt recovery rates. Buyers should request a chemical composition analysis (Spectrometer report) to check for alloying elements like Magnesium, Silicon, or Iron, which must align with the buyer's secondary aluminum ingot production requirements.

The most significant risk is 'Quality Discrepancy' or 'Cargo Substitution', where the top layer of a container looks correct, but the bottom is filled with heavy waste or low-grade dirt. To mitigate this, always mandate a third-party loading supervision (SGS or Bureau Veritas). Another risk is price volatility; use hedging strategies or fixed-period contracts to lock in prices when the market is favorable.

Avoid 100% advance payments. The safest method is using a Letter of Credit (L/C) at sight or Escrow services provided by reputable platforms like Made-in-China.com. For new suppliers, start with a trial order of 1-2 containers and perform a factory audit to verify their processing capacity and export licenses.

Scrap Aluminium is heavy and dense; ensure the supplier uses heavy-duty containers and follows proper weight distribution guidelines to prevent damage during transit. Verify the 'Free Time' at the destination port (demurrage/detention), as customs inspections for scrap metal can often take longer than finished goods, potentially leading to high port storage fees.