Chinese secondary aluminum alloy ingot market sees weak demand
2024-03-12 12:00:33 [Print]
BEIJING (Asian Metal) 12 Mar 24 - At present, the demand of downstream customers for secondary aluminum alloy ingot is still recovering slowly and has reached 70%-80% of the normal level. On Monday, mainstream prices for Chinese aluminum alloy ingot ADC12 stood at RMB19,500-19,700/t (USD2,716-2,743/t) delivered D/P, in line with last Friday. Insiders said that downstream customers are waiting and seeing the market currently, so prices for Chinese aluminum alloy ingot ADC12 might move down by RMB100/t (USD13.93/t) in the coming week.
A producer in Central China reported that their downstream customers are less interested in replenishing stocks this week and only purchase based on orders. Customers who once purchased 90t at a time only purchase 30t at a time now. "On Monday, we offered RMB19,600/t (USD2,729/t) delivered D/P for aluminum alloy ingot ADC12 and could accept a concession of RMB100/t (USD13.93/t) for regular customers, the same as last Friday. We sold 60t at RMB19,500/t (USD2,716/t) delivered D/P today and 30t at RMB19,600/t (USD2,729/t) delivered D/P last Saturday," the source said, adding that their downstream customers have weak demand at present and hold strong wait-and-see sentiment, so prices for Chinese aluminum alloy ingot ADC12 might fall by RMB100/t (USD13.93/t) in the week to come.
With an annual production capacity of 150,000t, the company started operation in February last year and produced a total of about 41,500t in 2023. They produced about 2,200t in February and expect to produce about 4,500t in March, holding about 200t of stocks now.
A producer in South China revealed that the purchase volume of their downstream customers at the moment is only about 70%-80% of the normal level, and the overall demand for secondary aluminum alloy ingot keeps weak. "On Monday, we could accept RMB19,600/t (USD2,729/t) delivered T/T 30 days for aluminum alloy ingot ADC12 and refused any counteroffers, unchanged from last Friday. We sold 30t at RMB19,600/t (USD2,729/t) delivered T/T 30 days on Monday and last sold 30t at RMB19,600/t (USD2,729/t) delivered D/P last Thursday," the source said, reckoning that prices for Chinese aluminum alloy ingot ADC12 would decline in the following week in view of the current overall weak demand for secondary aluminum alloy ingot.
With an annual production capacity of 150,000t, the producer produced about 112,000t in 2023. Holding about 3,000t of aluminum alloy ingot in stock now, the producer expects to produce about 10,000t in March, up from about 8,500t in February.
A producer in Central China reported that their downstream customers are less interested in replenishing stocks this week and only purchase based on orders. Customers who once purchased 90t at a time only purchase 30t at a time now. "On Monday, we offered RMB19,600/t (USD2,729/t) delivered D/P for aluminum alloy ingot ADC12 and could accept a concession of RMB100/t (USD13.93/t) for regular customers, the same as last Friday. We sold 60t at RMB19,500/t (USD2,716/t) delivered D/P today and 30t at RMB19,600/t (USD2,729/t) delivered D/P last Saturday," the source said, adding that their downstream customers have weak demand at present and hold strong wait-and-see sentiment, so prices for Chinese aluminum alloy ingot ADC12 might fall by RMB100/t (USD13.93/t) in the week to come.
With an annual production capacity of 150,000t, the company started operation in February last year and produced a total of about 41,500t in 2023. They produced about 2,200t in February and expect to produce about 4,500t in March, holding about 200t of stocks now.
A producer in South China revealed that the purchase volume of their downstream customers at the moment is only about 70%-80% of the normal level, and the overall demand for secondary aluminum alloy ingot keeps weak. "On Monday, we could accept RMB19,600/t (USD2,729/t) delivered T/T 30 days for aluminum alloy ingot ADC12 and refused any counteroffers, unchanged from last Friday. We sold 30t at RMB19,600/t (USD2,729/t) delivered T/T 30 days on Monday and last sold 30t at RMB19,600/t (USD2,729/t) delivered D/P last Thursday," the source said, reckoning that prices for Chinese aluminum alloy ingot ADC12 would decline in the following week in view of the current overall weak demand for secondary aluminum alloy ingot.
With an annual production capacity of 150,000t, the producer produced about 112,000t in 2023. Holding about 3,000t of aluminum alloy ingot in stock now, the producer expects to produce about 10,000t in March, up from about 8,500t in February.
