Aluminum Alloy Ingot Price shows Limited Growth possibility

According to the research results that aluminum alloy price was increased slightly in East China, Southern China and southwest, market supply volume increased also, weak consumption limited the growth space.

It is learned that newly added output in some large manufacturers in East China was put into market gradually, cast aluminum alloy enterprises in Southern China recovered step by step, supply volume in domestic cast aluminum alloy market continue to expand.

With the coming of September and October, downstream casting enterprises’ consumption was not improved obviously. The consumption was better than last month, orders’ increase rate also limited, many enterprises even faced with fund pressure, no intention to stock up.

At the 2012 Cast Aluminum Industry China Summit which was ended days ago, analysts predicted cast aluminum alloy’s prodiction will hit 6470 thousand tons in 2012, production in 2011 was 6120 thousand tons, East China, Southern China and North China occupied the most.

With the increasing of supply volume, sluggish demand limited the increasing of aluminum alloy price. Cast aluminum alloy was mainly used in auto and motorcycle industry. According to the statistics auto and motorcycle industry occupied 76% among all the end users of cast aluminum alloy.

The development of automobile industry will largely impact cast aluminum alloy market. At present, domestic automobile industry with sluggish demand, thus the demand in Chinese cast aluminum market dropped also. Auto sales volume improved slightly in August, but still limited the demand of cast aluminum market.