Demand for secondary aluminum alloy ingot in Chinese market recovers
2024-03-05 11:57:29 [Print]
BEIJING (Asian Metal) 5 Mar 24 - This week, with the gradual production resumption of downstream die casting enterprises, the demand for Chinese secondary aluminum alloy ingot increased significantly. On Monday, mainstream prices for Chinese aluminum alloy ingot ADC12 stood at RMB19,300-19,600/t (USD2,681-2,723/t) delivered D/P, up by RMB100/t (USD13.89/t) from last Friday. Insiders said that producers have strong intention to raise their prices at present because of the short supply of raw material aluminum scrap, so prices for Chinese aluminum alloy ingot ADC12 might move up in the week to come.
A producer in Central China revealed that their downstream consumers became interested in purchasing from late February, and currently, their outstanding orders have been arranged to three days later, while they still held aluminum alloy ingot inventories before the Spring Festival holiday. "On Monday, we would not sell aluminum alloy ingot ADC12 at prices lower than RMB19,600/t (USD2,723/t) delivered D/P, stable from last Saturday. At this price, we sold 60t on Monday and 30t last Saturday," the source said, adding that they have plan to mark up their prices this week in light of the current short supply of raw material aluminum scrap. They reckoned that prices for Chinese aluminum alloy ingot ADC12 would go up in the following week.
With an annual production capacity of 200,000t, the company produced about 386,000t in 2023 and about 3,300t in the first two months of 2024. They produced about 300t in February and expect to produce about 2,800t in March, holding no stock now.
A producer in Southwest China said that the demand of their downstream customers increased obviously in the past week, and they only hold about 150t of aluminum alloy ingot in stock now, while they held about 700t of stocks at the beginning of this year after the end of the Spring Festival holiday. "On Monday, we offered RMB19,700/t (USD2,737/t) delivered T/T 30 days for aluminum alloy ingot ADC12 and could accept a concession of RMB100/t (USD13.89/t) for regular customers, in line with last Friday. At this price, we sold 30t today and another 30t last Saturday," the source said, predicting that prices for Chinese aluminum alloy ingot ADC12 would increase in the coming week in view of the current tight supply of raw material aluminum scrap.
With an annual production capacity of 80,000t and about 150t of stocks now, the company produced about 27,200t in 2023. They produced about 1,200t in February and expect to produce 2,500t in March.
A producer in Central China revealed that their downstream consumers became interested in purchasing from late February, and currently, their outstanding orders have been arranged to three days later, while they still held aluminum alloy ingot inventories before the Spring Festival holiday. "On Monday, we would not sell aluminum alloy ingot ADC12 at prices lower than RMB19,600/t (USD2,723/t) delivered D/P, stable from last Saturday. At this price, we sold 60t on Monday and 30t last Saturday," the source said, adding that they have plan to mark up their prices this week in light of the current short supply of raw material aluminum scrap. They reckoned that prices for Chinese aluminum alloy ingot ADC12 would go up in the following week.
With an annual production capacity of 200,000t, the company produced about 386,000t in 2023 and about 3,300t in the first two months of 2024. They produced about 300t in February and expect to produce about 2,800t in March, holding no stock now.
A producer in Southwest China said that the demand of their downstream customers increased obviously in the past week, and they only hold about 150t of aluminum alloy ingot in stock now, while they held about 700t of stocks at the beginning of this year after the end of the Spring Festival holiday. "On Monday, we offered RMB19,700/t (USD2,737/t) delivered T/T 30 days for aluminum alloy ingot ADC12 and could accept a concession of RMB100/t (USD13.89/t) for regular customers, in line with last Friday. At this price, we sold 30t today and another 30t last Saturday," the source said, predicting that prices for Chinese aluminum alloy ingot ADC12 would increase in the coming week in view of the current tight supply of raw material aluminum scrap.
With an annual production capacity of 80,000t and about 150t of stocks now, the company produced about 27,200t in 2023. They produced about 1,200t in February and expect to produce 2,500t in March.
