Producers conservative about the recycled aluminum alloy offer
2012-03-29 09:41:40 [Print]
BEIJING (Asian Metal) 29 Mar 12 – Most participants predict the offer for recycled aluminum alloy may keep stable in the following month which is hard to go up or down under the slack demand and large capacity.
One producer from Shanghai told that they still offer RMB16,700-17,200/t (USD2,655-2,734/t) for ADC12 aluminum alloy these days. He wants to increase the offer by RMB100/t (USD16/t) in the near term, but he is also wondering if consumers can accept the higher offer.
According to the source, the sales volume of this company decreases a bit these two months. For one part, the orders for the downstream plants also go down and for another, some buyers give much lower price which cannot be accepted.
“As far as I know, some large aluminum casting users predict that the purchasing price may keep almost stable in the latter half year of 2012, so I think the recycled aluminum alloy offer may keep weak in the whole year,” said the source.
The company is running at monthly production of 2,000t these two months with operating level of about 67%.
Another producer from Chongqing told that they offer RMB16,300-16,400/t (USD2,591-2,607/t) ex works by cash for ADC12 aluminum alloy these days and the price is about RMB16,600/t (USD2,639/t) delivered to Shanghai.
“The market competition in our local market is fierce and some other plants are expanding their capacities currently, so we have to keep our offer at a low level,” said the source, who indicated that with the weak aluminum ingot price and price competition, the price of recycled aluminum alloy is hard to go up in the near term. What is more, they report that following the larger capacity this year, there must be some small and middle-sized plants retreating from the market this year.
The company has monthly production of 4,000t.
One producer from Shanghai told that they still offer RMB16,700-17,200/t (USD2,655-2,734/t) for ADC12 aluminum alloy these days. He wants to increase the offer by RMB100/t (USD16/t) in the near term, but he is also wondering if consumers can accept the higher offer.
According to the source, the sales volume of this company decreases a bit these two months. For one part, the orders for the downstream plants also go down and for another, some buyers give much lower price which cannot be accepted.
“As far as I know, some large aluminum casting users predict that the purchasing price may keep almost stable in the latter half year of 2012, so I think the recycled aluminum alloy offer may keep weak in the whole year,” said the source.
The company is running at monthly production of 2,000t these two months with operating level of about 67%.
Another producer from Chongqing told that they offer RMB16,300-16,400/t (USD2,591-2,607/t) ex works by cash for ADC12 aluminum alloy these days and the price is about RMB16,600/t (USD2,639/t) delivered to Shanghai.
“The market competition in our local market is fierce and some other plants are expanding their capacities currently, so we have to keep our offer at a low level,” said the source, who indicated that with the weak aluminum ingot price and price competition, the price of recycled aluminum alloy is hard to go up in the near term. What is more, they report that following the larger capacity this year, there must be some small and middle-sized plants retreating from the market this year.
The company has monthly production of 4,000t.
Aluminum Alloy TC A356.2 Delivered China
Unit:RMB/mt
China secondary aluminum alloy producers' inventory to production ratio statistics by province by month
Unit: %
