Aluminium Scrap Spreads Widen; Copper Remains Tight Into Summer

Aluminium Scrap Spreads Widen; Copper Remains Tight Into Summer

The aluminium scrap market is showing the widest corridor spreads in three weeks, with UBC (used beverage can) flows from Germany into India priced at a gross margin of 12.8%—equivalent to roughly $260 per metric tonne landed cost of $2040/MT. The confidence score of 0.78 reflects solid liquidity on both legs, though execution windows remain tight for larger lots.

This widening reflects seasonal factors: European UBC supply typically peaks in June as beverage consumption rises ahead of summer holidays, while Indian recyclers are actively bidding to fill Q3 production slots ahead of monsoon-season logistics constraints. Traders should note that landed-cost assumptions include standard port fees, documentation, and a 2–3 week transit window. Actual execution may vary based on vessel availability and spot bunker costs.

Copper scrap presents a different picture. The Poland–Turkey millberry corridor remains compressed at 5.0% gross margin ($425/MT), with landed cost sitting at $8575/MT. The confidence score of 0.72 indicates moderate liquidity but wider bid–ask spreads on the Turkish import side. This tightness is typical for copper heading into summer, when Turkish mills often reduce intake ahead of July–August maintenance windows.

Key observations:

• Aluminium spreads reward patient execution; smaller, staggered shipments often achieve better fills than single large lots.
• Copper arbitrage remains viable but requires precision on timing and logistics cost management.
• Both corridors show healthy two-way flow, suggesting no supply disruption or geopolitical friction at present.

Recyclers and trade-finance teams should monitor Turkish mill maintenance schedules and Indian monsoon forecasts over the next two weeks. Spreads often spike or compress sharply when operational calendars shift. The current window—particularly for aluminium—may not persist beyond early July.

Confidence scores reflect platform data quality and recent transaction volume; lower scores warrant extra due diligence on counterparty creditworthiness and execution risk.

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ArbiTrade provides market intelligence and coordination only. It does not execute trades, hold funds, act as a counterparty, or guarantee pricing, execution, or profit. This article is general commentary, not investment, legal, or trading advice. Conduct independent diligence before transacting.