Chinese secondary aluminum alloy ingot market demand declines
2023-04-11 10:46:41 [Print]
BEIJING (Asian Metal) 11 Apr 23 - This week, secondary aluminum alloy ingot producers face increasing sales pressure and the market sees rare deals. On Monday, mainstream prices for Chinese aluminum alloy ingot ADC12 stood at RMB18,500-18,700/t (USD2,686-2,715/t) delivered D/P, stable from last Friday. Insiders reckon that prices for Chinese aluminum alloy ingot ADC12 would move down in the week to come as orders from downstream customers keep decreasing now.
A producer in Southwest China revealed that their downstream customers place rare orders now. As a result, their inventory increases from about 500t in late march to current about 800t. "On Monday, we offered RMB18,800/t (USD2,729/t) delivered D/P for aluminum alloy ingot ADC12 and could accept RMB18,500/t (USD2,686/t) delivered T/T 10 days for regular customers. We failed to close deals today, while sold 100t at RMB18,500/t (USD2,686/t) delivered T/T 10 days last Friday," the source said, adding that the demand for secondary aluminum alloy ingot keeps weak and prices for Chinese aluminum alloy ingot ADC12 might drop by RMB100/t (USD14.52/t) in the following week.
With an annual production capacity of 200,000t, the producer produced about 41,000t in 2022 and expects to produce about 2,500t in April, compared with about 2,600t in March. They hold about 800t of aluminum alloy ingot in stock now.
Another producer in Southwest China reported that orders from their downstream customers in early April decreased by about 20% from March. "On Monday, we offered RMB18,700/t (USD2,715/t) delivered D/P for aluminum alloy ingot ADC12 and could accept a concession of RMB100/t (USD14.52/t), while last Friday, we would not sell the material at prices lower than RMB18,700/t (USD2,715/t) delivered D/P. We sold 400t at RMB18,600/t (USD2,700/t) delivered D/P today and 30t at RMB18,700/t (USD2,715/t) delivered D/P last Friday," the source said, adding that orders from downstream customers keep decreasing now, so prices for Chinese aluminum alloy ingot ADC12 might drop by RMB100/t (USD14.52/t) in the coming week.
With an annual production capacity of 100,000t, the producer produced about 32,500t in 2022 and expects to produce at most 3,000t in April, compared with about 3,000t in March. They hold about 400t of stocks now.
A producer in Southwest China revealed that their downstream customers place rare orders now. As a result, their inventory increases from about 500t in late march to current about 800t. "On Monday, we offered RMB18,800/t (USD2,729/t) delivered D/P for aluminum alloy ingot ADC12 and could accept RMB18,500/t (USD2,686/t) delivered T/T 10 days for regular customers. We failed to close deals today, while sold 100t at RMB18,500/t (USD2,686/t) delivered T/T 10 days last Friday," the source said, adding that the demand for secondary aluminum alloy ingot keeps weak and prices for Chinese aluminum alloy ingot ADC12 might drop by RMB100/t (USD14.52/t) in the following week.
With an annual production capacity of 200,000t, the producer produced about 41,000t in 2022 and expects to produce about 2,500t in April, compared with about 2,600t in March. They hold about 800t of aluminum alloy ingot in stock now.
Another producer in Southwest China reported that orders from their downstream customers in early April decreased by about 20% from March. "On Monday, we offered RMB18,700/t (USD2,715/t) delivered D/P for aluminum alloy ingot ADC12 and could accept a concession of RMB100/t (USD14.52/t), while last Friday, we would not sell the material at prices lower than RMB18,700/t (USD2,715/t) delivered D/P. We sold 400t at RMB18,600/t (USD2,700/t) delivered D/P today and 30t at RMB18,700/t (USD2,715/t) delivered D/P last Friday," the source said, adding that orders from downstream customers keep decreasing now, so prices for Chinese aluminum alloy ingot ADC12 might drop by RMB100/t (USD14.52/t) in the coming week.
With an annual production capacity of 100,000t, the producer produced about 32,500t in 2022 and expects to produce at most 3,000t in April, compared with about 3,000t in March. They hold about 400t of stocks now.
