AM Statistics: Chinese secondary aluminum alloy ingot output down by 7% MOM in August
2015-09-08 10:10:55 [Print]
BEIJING (Asian Metal) 8 Sep 15 - According to Asian Metal Database, Chinese secondary aluminum alloy ingot output dropped by 7% MOM to around 235,000t in August. Chinese total secondary aluminum alloy ingot output stood at around 2.02 million tonnes in the first eight months of this year.
Chinese secondary aluminum alloy ingot output by month (10,000t)
The above graph shows that the output of secondary aluminum alloy ingot fell down in the past two months. Firstly, as the sales volume of auto plants edged down drastically in Jul- Aug, some die-casting plants suspended production or cut production. Secondly, because the secondary aluminum alloy ingot prices were volatile and the capital of downstream plants was tight, they didn’t intent to build up stocks and purchased from hand to mouth. Thirdly, due to the Yen depreciation, Japanese importers took prudent attitudes to make purchase. Besides, the export prices for secondary aluminum alloy ingot moved down by USD160/t to nearly USD1,760/t from July to August and the export prices were close to the cost level, so some Chinese exporters reduced the export volumes or halted export temporarily. Hence, the output of secondary aluminum alloy ingot slid down in Jul- Aug.
The operating rate for secondary aluminum alloy ingot plants stood at around 58.32% in August down from 61.19% in July. The operating rate of Jiangsu, Zhejiang, Guangdong and Shanghai stood at 46.98%, 71.83%, 67.06% and 56% in August, down from 51.88%, 74.65%, 74.60% and 71.2% respectively.
Chinese secondary aluminum alloy ingot operating rate by month
It is predicted that September will also witness low operation of secondary aluminum alloy ingot plants. On the one hand, the shrinking demand in Jul-August this year was not seasonal and the market will not turn better in short time. On another hand, the high stocks of automobiles in auto plants in China will take a long time to consume. Therefore, the demand for secondary aluminum alloy ingot may show little sign of getting better in September.
Chinese secondary aluminum alloy ingot output by month (10,000t)
The above graph shows that the output of secondary aluminum alloy ingot fell down in the past two months. Firstly, as the sales volume of auto plants edged down drastically in Jul- Aug, some die-casting plants suspended production or cut production. Secondly, because the secondary aluminum alloy ingot prices were volatile and the capital of downstream plants was tight, they didn’t intent to build up stocks and purchased from hand to mouth. Thirdly, due to the Yen depreciation, Japanese importers took prudent attitudes to make purchase. Besides, the export prices for secondary aluminum alloy ingot moved down by USD160/t to nearly USD1,760/t from July to August and the export prices were close to the cost level, so some Chinese exporters reduced the export volumes or halted export temporarily. Hence, the output of secondary aluminum alloy ingot slid down in Jul- Aug.
The operating rate for secondary aluminum alloy ingot plants stood at around 58.32% in August down from 61.19% in July. The operating rate of Jiangsu, Zhejiang, Guangdong and Shanghai stood at 46.98%, 71.83%, 67.06% and 56% in August, down from 51.88%, 74.65%, 74.60% and 71.2% respectively.
Chinese secondary aluminum alloy ingot operating rate by month
It is predicted that September will also witness low operation of secondary aluminum alloy ingot plants. On the one hand, the shrinking demand in Jul-August this year was not seasonal and the market will not turn better in short time. On another hand, the high stocks of automobiles in auto plants in China will take a long time to consume. Therefore, the demand for secondary aluminum alloy ingot may show little sign of getting better in September.
Aluminum Alloy ADC12 CIF China
Unit:USD/mt
China secondary aluminum alloy producers' suspension number statistics by province by month
Unit: pcs
