Impact on the price of recycled aluminum products.
The silicon content of secondary aluminum alloy ingot ADC12 is 9.6-12%. Its price is lower than primary aluminum for a long time. The change of silicon price will make the price of ADC12 higher than primary aluminum. The cost of silicon-containing products increases significantly.
Impact on the value of raw aluminum scrap.
Aluminum scrap mainly consists of raw aluminum and cooked aluminum. Primary aluminum is usually an aluminum-silicon alloy. For a long time, the price of raw aluminum was lower than that of wrought aluminum. The value of raw aluminum has risen dramatically, driven by rising silicon prices.
Silicon has gone from being a cost-reducing metal to a cost-increasing metal. Silicon will become an important factor in determining the value of scrap aluminum. Recycled aluminum companies have never paid more attention to silicon, and must pay attention to silicon procurement and establish stable supply channels.
Industry Summary and Outlook
Changes in the silicon and aluminum spread have altered the material structure and pricing model of the aluminum-silicon alloy market. Recycled aluminum is an important way for the aluminum industry to achieve its dual-carbon goals. The expansion of recycled aluminum applications will affect silicon demand.
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