Platts
China domestic alloy ADC12 prices slip on weak demand
Edited by : AL CIRCLE
2 min read
Offer prices for aluminum alloy ADC12 in China's domestic market inched down this week as a prolonged period of weak demand continued, local industry sources said Tuesday.
Leading producer Sigma Metals kept its offers at Yuan 17,100/mt ($2,719/mt) ex-works Tuesday, unchanged from last Tuesday. Most non-Sigma offers were heard around Yuan 16,100-16,300/mt, slightly lower than Yuan 16,200-16,400/mt the previous week.
Platts lowered its weekly China domestic ADC12 assessment to Yuan 16,100-16,300/mt ex-works Tuesday, from Yuan 16,200-16,400/mt last week.
A Jiangsu-based producer said his company recently sold some material in the domestic market in the range of Yuan 16,100-16,300/mt ex-works.
"Scrap supply in China and overseas remains tight, affected by reduced recycling activity in a weak global economy ... It's getting more difficult for Chinese ADC12 producers to do business nowadays as the production cost is high, affected by tighter scrap supply while prices stay weak, depressed by weak global demand," a producer said.
Another producer said the amount of ADC12 used in the production of household appliances and automobiles had been declining as global demand for the products remained lackluster. "I don't think domestic ADC12 prices in China will rebound any time soon as the market continues to be pressured by more supply than demand," he said.
A third producer expected prices to remain weak for the rest of the year. "Domestic demand traditionally picks up in the fourth quarter, but this year is the exception," she said.
A Chinese diecaster reported buying ADC12 at Yuan 16,100/mt recently. "Prices are down and the market is lacking new direction," she said.
The Chinese spot ingot price was heard around Yuan 15,070-15,110/mt Tuesday, down from Yuan 15,130/mt last Tuesday.
The spot export price of Chinese ADC12 fell to $2,130-2,160/mt FOB China Tuesday from $2,140-2,170/mt last week due to increased competition in major export markets Thailand and Japan.
One Chinese producer reported sales of 100-200 mt lots into Thailand at $2,180/mt CFR Bangkok, which would include freight over FOB China prices.
In the Japanese market, Chinese producers continue to face competitive pressure from Russian and southern European producers. Chinese producers offered $2,140-2,150/mt CFR Japan for December-January shipments this week, while Russian and southern European producers offered at $2,090-2,100/mt CFR for December shipments, Japanese traders said.
Leading producer Sigma Metals kept its offers at Yuan 17,100/mt ($2,719/mt) ex-works Tuesday, unchanged from last Tuesday. Most non-Sigma offers were heard around Yuan 16,100-16,300/mt, slightly lower than Yuan 16,200-16,400/mt the previous week.
Platts lowered its weekly China domestic ADC12 assessment to Yuan 16,100-16,300/mt ex-works Tuesday, from Yuan 16,200-16,400/mt last week.
A Jiangsu-based producer said his company recently sold some material in the domestic market in the range of Yuan 16,100-16,300/mt ex-works.
"Scrap supply in China and overseas remains tight, affected by reduced recycling activity in a weak global economy ... It's getting more difficult for Chinese ADC12 producers to do business nowadays as the production cost is high, affected by tighter scrap supply while prices stay weak, depressed by weak global demand," a producer said.
Another producer said the amount of ADC12 used in the production of household appliances and automobiles had been declining as global demand for the products remained lackluster. "I don't think domestic ADC12 prices in China will rebound any time soon as the market continues to be pressured by more supply than demand," he said.
A third producer expected prices to remain weak for the rest of the year. "Domestic demand traditionally picks up in the fourth quarter, but this year is the exception," she said.
A Chinese diecaster reported buying ADC12 at Yuan 16,100/mt recently. "Prices are down and the market is lacking new direction," she said.
The Chinese spot ingot price was heard around Yuan 15,070-15,110/mt Tuesday, down from Yuan 15,130/mt last Tuesday.
The spot export price of Chinese ADC12 fell to $2,130-2,160/mt FOB China Tuesday from $2,140-2,170/mt last week due to increased competition in major export markets Thailand and Japan.
One Chinese producer reported sales of 100-200 mt lots into Thailand at $2,180/mt CFR Bangkok, which would include freight over FOB China prices.
In the Japanese market, Chinese producers continue to face competitive pressure from Russian and southern European producers. Chinese producers offered $2,140-2,150/mt CFR Japan for December-January shipments this week, while Russian and southern European producers offered at $2,090-2,100/mt CFR for December shipments, Japanese traders said.
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