China's domestic ADC12 alloys slip on weaker ingot prices

China's domestic offers for aluminum alloy ADC12 slipped on the week on the back of the persistent weakness in aluminum ingot prices, industry sources said Tuesday.

This is in addition to the weak buying interest in view of the summer lull when plants carry out their scheduled maintenance.

Leading producer Sigma Metals reduced its offers to 17,000/mt ($2,763/mt) ex-works Tuesday, down from Yuan 17,100/mt last Tuesday, while most non-Sigma offers fell about Yuan 100/mt from Yuan 16,300-16,700/mt seen the previous week.

Platts lowered its weekly China domestic ADC12 assessment to Yuan 16,300-16,600/mt ex-works Tuesday, from Yuan 16,400-16,600/mt last Tuesday.

Sources added that the aluminum scrap price appeared to have softened in view of the persisting weakness in aluminum ingot prices.

"Aluminum prices have been weak and the scrap price has finally suffered the effects. I heard offers for aluminum scrap at below Yuan 13,000/mt now," the south central Chinese producer said.

The Chinese spot ingot price was heard around Yuan 15,270/mt Tuesday, down from Yuan 15,400/mt last Tuesday, while the September aluminum futures contract was at Yuan 15,290/mt on the Shanghai Futures Exchange, down from Yuan 15,410/mt last Tuesday.

Meanwhile, spot import trade of Chinese-origin ADC12 into Japan was thin due to the US dollar trading above Yen 79, the highest rate since the middle of July, Japanese trade sources said Tuesday.

The lowest offer from a Chinese producer was heard at $2,120/mt CFR Japan for October shipment from Guangzhou, but this failed to attract buyers.

Most Chinese producer offers were at $2,130-2,150/mt. Russian producers were also offering in this range for late September-early October shipments.

There was no spot offer from European producers.

Sigma lowered its offers to $2,245/mt Tuesday, down from $2,255/mt last Tuesday.