Chinese secondary aluminum alloy ingot producers bear increasing inventory pressure
2024-04-08 09:59:05 [Print]
BEIJING (Asian Metal) 8 Apr 24 - Early this month, downstream secondary aluminum alloy ingot customers have less interest in purchasing, and producers bear increasing inventory pressure. Last Sunday, mainstream prices for Chinese aluminum alloy ingot ADC12 stood at RMB19,600-19,800/t (USD2,710-2,737/t) delivered D/P, stable from the previous trading day. Insiders said that the demand for secondary aluminum alloy ingot keeps weak at present, and producers bear increasing inventory pressure, so prices for Chinese aluminum alloy ingot ADC12 might move down in the week to come.
A producer in Guangdong revealed that their downstream customers have strong wait-and-see sentiment starting from late March. As a result, their sales of secondary aluminum alloy ingot decreased significantly and their inventory reaches around 800t currently, up from about 300t in early March. "Last Sunday, we would not sell aluminum alloy ingot ADC12 at prices lower than RMB19,800/t (USD2,737/t) delivered D/P, the same as the previous trading day. We didn't close deals over the weekend, while last sold 30t at RMB19,800/t (USD2,737/t) delivered D/P last Wednesday," the source said, adding that the secondary aluminum alloy ingot market keeps quiet for the time being, and producers bear heavy inventory pressure, so prices for Chinese aluminum alloy ingot ADC12 might decline in the following week.
With an annual production capacity of 60,000t, the company produced about 22,500t in 2023. Holding about 600t of stocks now, they produced about 300t and 2,500t in February and March respectively.
A producer in Jiangsu indicated that the purchase enthusiasm of their downstream customers weakened obviously in April, so their inventory increases from about 200t in early March to current about 600t. "Last Sunday, we would not sell aluminum alloy ingot ADC12 at prices lower than RMB19,800/t (USD2,737/t) delivered D/P, unchanged from the previous trading day. At this price, we sold 20t last Sunday and 30t last Wednesday," the source said, adding that they bear great inventory pressure now, and downstream customers place few orders, so prices for Chinese aluminum alloy ingot ADC12 might slide in the coming week.
With an annual production capacity of 100,000t, the producer produced about 39,000t in 2023. They produced about 1,800t and 3,400t in February and March respectively, holding about 600t of aluminum alloy ingot in stock now.
A producer in Guangdong revealed that their downstream customers have strong wait-and-see sentiment starting from late March. As a result, their sales of secondary aluminum alloy ingot decreased significantly and their inventory reaches around 800t currently, up from about 300t in early March. "Last Sunday, we would not sell aluminum alloy ingot ADC12 at prices lower than RMB19,800/t (USD2,737/t) delivered D/P, the same as the previous trading day. We didn't close deals over the weekend, while last sold 30t at RMB19,800/t (USD2,737/t) delivered D/P last Wednesday," the source said, adding that the secondary aluminum alloy ingot market keeps quiet for the time being, and producers bear heavy inventory pressure, so prices for Chinese aluminum alloy ingot ADC12 might decline in the following week.
With an annual production capacity of 60,000t, the company produced about 22,500t in 2023. Holding about 600t of stocks now, they produced about 300t and 2,500t in February and March respectively.
A producer in Jiangsu indicated that the purchase enthusiasm of their downstream customers weakened obviously in April, so their inventory increases from about 200t in early March to current about 600t. "Last Sunday, we would not sell aluminum alloy ingot ADC12 at prices lower than RMB19,800/t (USD2,737/t) delivered D/P, unchanged from the previous trading day. At this price, we sold 20t last Sunday and 30t last Wednesday," the source said, adding that they bear great inventory pressure now, and downstream customers place few orders, so prices for Chinese aluminum alloy ingot ADC12 might slide in the coming week.
With an annual production capacity of 100,000t, the producer produced about 39,000t in 2023. They produced about 1,800t and 3,400t in February and March respectively, holding about 600t of aluminum alloy ingot in stock now.
