Chinese market sees shrinking demand for secondary aluminum alloy ingot
2024-03-26 10:58:06 [Print]
BEIJING (Asian Metal) 26 Mar 24 - Over the recent week, notable decreases were seen in downstream clients' interest to purchase secondary aluminum alloy ingot. This Monday, mainstream prices for Chinese aluminum alloy ingot ADC12 stood at RMB19,500-19,700/t (USD2,702-2,729/t) delivered D/P, unchanged from last Friday. Despite soft market demand, insiders believe that prices for Chinese aluminum alloy ingot would stay unchanged in the coming week in view of supply shortage of raw material aluminum scrap.
A producer in South China revealed that in the recent week purchases made by his downstream clients decreased notably; now his aluminum alloy ingot stocks grow to around 600t, while in early March he held only about 200t of stocks. "On Monday, we refused to sell aluminum alloy ingot ADC12 at below RMB19,500/t (USD2,702/t) EXW D/P, the same as last Friday. Today we made no sales and last sold 30t at RMB19,500/t (USD2,702/t) EXW D/P last Friday," the source said. Having short aluminum scrap supply, he had no intention to lower his aluminum alloy ingot price and believed that prices for Chinese aluminum alloy ingot ADC12 would level off in the following week.
With an annual production capacity of 250,000t, the producer produced about 147,000t in 2023 and holds about 600t of aluminum alloy ingot stocks now. He expects to produce about 9,000t in March, up from about 4,000t in February.
Another producer in South China revealed that in March demand from his downstream clients was soft, so he expects his sales to be only around 2,000t this month, lower than 2,600t in the same period of last year. "On Monday, we refused to sell aluminum alloy ingot ADC12 at below RMB19,700/t (USD2,729/t) delivered D/P, unchanged from last Friday. Today we sold 30t at RMB19,700/t (USD2,729/t) delivered D/P and last Saturday sold 10t at RMB19,700/t (USD2,729/t) delivered D/P," the source said, adding that they have difficulty in replenishing aluminum scrap now and therefore have no intention to accept counteroffers from clients. He believed that prices for Chinese aluminum alloy ingot ADC12 would remain stable in the following week.
With an annual production capacity of 60,000t, the producer produced about 25,000t in 2023 and about 3,200t in the first quarter of this year, holding about 200t of aluminum alloy ingot stocks now.
A producer in South China revealed that in the recent week purchases made by his downstream clients decreased notably; now his aluminum alloy ingot stocks grow to around 600t, while in early March he held only about 200t of stocks. "On Monday, we refused to sell aluminum alloy ingot ADC12 at below RMB19,500/t (USD2,702/t) EXW D/P, the same as last Friday. Today we made no sales and last sold 30t at RMB19,500/t (USD2,702/t) EXW D/P last Friday," the source said. Having short aluminum scrap supply, he had no intention to lower his aluminum alloy ingot price and believed that prices for Chinese aluminum alloy ingot ADC12 would level off in the following week.
With an annual production capacity of 250,000t, the producer produced about 147,000t in 2023 and holds about 600t of aluminum alloy ingot stocks now. He expects to produce about 9,000t in March, up from about 4,000t in February.
Another producer in South China revealed that in March demand from his downstream clients was soft, so he expects his sales to be only around 2,000t this month, lower than 2,600t in the same period of last year. "On Monday, we refused to sell aluminum alloy ingot ADC12 at below RMB19,700/t (USD2,729/t) delivered D/P, unchanged from last Friday. Today we sold 30t at RMB19,700/t (USD2,729/t) delivered D/P and last Saturday sold 10t at RMB19,700/t (USD2,729/t) delivered D/P," the source said, adding that they have difficulty in replenishing aluminum scrap now and therefore have no intention to accept counteroffers from clients. He believed that prices for Chinese aluminum alloy ingot ADC12 would remain stable in the following week.
With an annual production capacity of 60,000t, the producer produced about 25,000t in 2023 and about 3,200t in the first quarter of this year, holding about 200t of aluminum alloy ingot stocks now.
