14 AUGUST 2014Shanghai Metal Market
A356 Aluminum alloy processing fees in China to Stabilize in August following July’s uptick
Edited by : AL CIRCLE
1 min read
Processing fees for A356 aluminum alloy in China are expected to stabilize between 700-750 yuan ($114-122) per tonne in August after July’s slight rise, Shanghai Metals Market foresees.
Tight supply, high production costs and limited demand growth will keep processing charges for the wheel making ingredient stable in August, SMM estimates.
Falling supply and rising aluminum prices were major contributors to the 50 yuan/tonne rise in processing fees in July. Some alloy makers cut output against high production costs, while others shifted to aluminum bar production for decent sales. As a consequence, the average operating rate at the surveyed alloy makers slipped month-on-month to 66.88% in July, causing the monthly output to drop 1,000 tonnes from a month ago to 107,000 tonnes.
Tight supply, high production costs and limited demand growth will keep processing charges for the wheel making ingredient stable in August, SMM estimates.
Falling supply and rising aluminum prices were major contributors to the 50 yuan/tonne rise in processing fees in July. Some alloy makers cut output against high production costs, while others shifted to aluminum bar production for decent sales. As a consequence, the average operating rate at the surveyed alloy makers slipped month-on-month to 66.88% in July, causing the monthly output to drop 1,000 tonnes from a month ago to 107,000 tonnes.
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