Asian Metal visits Kadiya Aluminum and CS Metal

Friday Gao, senior analyst of aluminum and Nancy Zhang, assistant analyst of aluminum alloy of Asian Metal, visited Suzhou Kadiya Aluminum Co., Ltd and Shanghai Shuaiyichi Aluminum alloy Co., Ltd on 19th June 2012, the two main producers of recycled aluminum alloy ingot in Suzhou and Shanghai.

Both sides friendly communicated about the current situation of Chinese recycled aluminum alloy ingot market and its tendency.

Established in 2008, Suzhou Kadiya Aluminum is located in Changshu, Suzhou. The primary annual aluminum alloy capacity of this company is around 60,000t. The company is building another production line which will be put into production in late July, and then its total capacity will reach 180,000tpy. In addition, its newly-built aluminum castings production line came on stream in March with designed monthly capacity of 800t. Besides, the company also has export business.

Mr. Zhou Hongjiang, general manager of Kadiya Aluminum thinks the slack season of recycled aluminum alloy ingot comes too early this year and the boom season will be delayed. It is partly because the downstream motor market gets slack this year. However, from the current situation, the government is less likely to carry out favorable policies to push up the motor market.

Shanghai Shuaiyichi Aluminum Alloy Co., Ltd is a new branch of CS Metal, located in Jinshan, Shanghai with designed capacity of 50,000tpy. The company is exploring the aluminum liquid providing business with local downstream plants within 20 miles. Both sides communicated views about the expanding recycled aluminum alloy industry and fierce competition.

The general manager Mr. Cheng Shuai thinks though Chinese aluminum alloy ingot market gets more slack this year, the industry is still expanding and faces integration. He believes the industry will develop more healthily but in the first period of the process, every single plant will going through a tough time. In addition, compared with the large-scaled and small-scaled plants, the middle-scaled plants are running with more difficulties. Cheng advised the government that it should strengthen the supervise on small-scaled plants, especially for environment concerns.