Chinese secondary aluminum alloy ingot market sees weak demand
2024-04-29 11:48:06 [Print]
BEIJING (Asian Metal) 29 Apr 24 - Mid-to-late this month, the demand for secondary aluminum alloy ingot kept weak and the purchase volume of consumers deceased slightly. Late last week, mainstream prices for Chinese aluminum alloy ingot ADC12 stood at RMB19,700-19,900/t (USD2,719-2,746/t) delivered D/P, unchanged from the previous trading day. Insiders said that despite the current weak demand for secondary aluminum alloy ingot, prices for Chinese aluminum alloy ingot ADC12 would keep soft in the week to come supported by the firm price of aluminum scrap, the raw material.
A producer in Hunan revealed that orders of their downstream customers decreased slightly in mid-to-late April, and the sales in the past ten days declined by about 10% compared with those in the same period of March. "We offered RMB19,800/t (USD2,732/t) delivered D/P for aluminum alloy ingot ADC12 late this week, and could accept a concession of RMB100/t (USD13.80/t) for orders above 60t of regular customers. At this price, we sold 30t today and 20t last Saturday," the source said, adding that the price of cast aluminum scrap keeps firm at present and they have no plan to lower prices to close deals for the time being. They reckoned that prices for Chinese aluminum alloy ingot ADC12 would remain weakly stable in the following week.
With an annual production capacity of 80,000t, the company produced about 23,700t in 2023 and holds about 200t of stocks now. They expect to produce 2,100t in April, down from 2,300t in March.
A producer in Jiangsu reported that their inventory increases from 150t in early April to current 300t as a result of the sharp decline in the demand of their downstream customers in mid-to-late April. "Late this week, we could accept a price of RMB19,900/t (USD2,746/t) delivered D/P for aluminum alloy ingot ADC12 and could accept a concession of RMB100/t (USD13.80/t) for regular customers. We sold 30t at RMB19,900/t (USD2,746/t) delivered D/P today and another 30t at RMB19,800/t (USD2,732/t) delivered D/P yesterday," the source said, predicting that although the demand for secondary aluminum alloy is weak now, prices for Chinese aluminum alloy ingot ADC12 would keep flat in the coming week supported by the firm price of aluminum scrap.
With an annual production capacity of 36,000t, the producer produced about 20,300t in 2023 and holds about 300t of stocks now. They produced about 1,800t in March and expect to produce about 1,500t in April.
A producer in Hunan revealed that orders of their downstream customers decreased slightly in mid-to-late April, and the sales in the past ten days declined by about 10% compared with those in the same period of March. "We offered RMB19,800/t (USD2,732/t) delivered D/P for aluminum alloy ingot ADC12 late this week, and could accept a concession of RMB100/t (USD13.80/t) for orders above 60t of regular customers. At this price, we sold 30t today and 20t last Saturday," the source said, adding that the price of cast aluminum scrap keeps firm at present and they have no plan to lower prices to close deals for the time being. They reckoned that prices for Chinese aluminum alloy ingot ADC12 would remain weakly stable in the following week.
With an annual production capacity of 80,000t, the company produced about 23,700t in 2023 and holds about 200t of stocks now. They expect to produce 2,100t in April, down from 2,300t in March.
A producer in Jiangsu reported that their inventory increases from 150t in early April to current 300t as a result of the sharp decline in the demand of their downstream customers in mid-to-late April. "Late this week, we could accept a price of RMB19,900/t (USD2,746/t) delivered D/P for aluminum alloy ingot ADC12 and could accept a concession of RMB100/t (USD13.80/t) for regular customers. We sold 30t at RMB19,900/t (USD2,746/t) delivered D/P today and another 30t at RMB19,800/t (USD2,732/t) delivered D/P yesterday," the source said, predicting that although the demand for secondary aluminum alloy is weak now, prices for Chinese aluminum alloy ingot ADC12 would keep flat in the coming week supported by the firm price of aluminum scrap.
With an annual production capacity of 36,000t, the producer produced about 20,300t in 2023 and holds about 300t of stocks now. They produced about 1,800t in March and expect to produce about 1,500t in April.
