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June Output of A356 Aluminum Alloy Ingot Reaches New High
Edited by : AL CIRCLE
2 min read
Domestic output and sales volume of passenger cars in June have reached new highs compared with previous month and the same month in 2010. Overseas wheel hub orders were continuously reported. As the automotive industry growth outweighed expectations, June output of A356 aluminum alloy ingot reached a new high of 81.3 kt this year.
The SMM survey covered 12 A356 aluminum ingot producers, with 8 located in east China, 2 in north China, one in southwest China and 1 in northwest China. Among the 12 producers, 6 have a 10 kt or higher monthly capacity. The other 6 can each only provide less than 10 kt of A356 aluminum ingots monthly. Aluminum alloy ingots are mainly sold to Zhejiang, Jiangsu, Shanghai and Anhui etc.
Total monthly capacity of the 12 producers is 108 kt, with a total output of 81.3 kt in June, which is higher than May’s 76.3 kt. Many of the respondents told SMM that as overseas orders increased and domestic automotive industry recovered, downstream wheel hub producers increased their purchase volumes for A356 aluminum ingots. In the first half of 2011, many new capacities were released at wheel hub producers in Jiangsu and Zhejiang. However, as supply of A356 aluminum ingot was much larger than last year, production and sales of this type of ingot were relatively balanced.
Current purchasing prices for A356 aluminum ingot users have been maintained at A00 aluminum price plus a processing fee of RMB 800-900/mt, which has been moving stably after reaching its peak RMB 1,000/mt during the end of 2010. Though downstream consumption in June was good, as July and August belong to low seasons, SMM expects operating rates of A356 aluminum ingot to continuously decline in the coming months, posing downward pressures for aluminum prices.
The SMM survey covered 12 A356 aluminum ingot producers, with 8 located in east China, 2 in north China, one in southwest China and 1 in northwest China. Among the 12 producers, 6 have a 10 kt or higher monthly capacity. The other 6 can each only provide less than 10 kt of A356 aluminum ingots monthly. Aluminum alloy ingots are mainly sold to Zhejiang, Jiangsu, Shanghai and Anhui etc.
Total monthly capacity of the 12 producers is 108 kt, with a total output of 81.3 kt in June, which is higher than May’s 76.3 kt. Many of the respondents told SMM that as overseas orders increased and domestic automotive industry recovered, downstream wheel hub producers increased their purchase volumes for A356 aluminum ingots. In the first half of 2011, many new capacities were released at wheel hub producers in Jiangsu and Zhejiang. However, as supply of A356 aluminum ingot was much larger than last year, production and sales of this type of ingot were relatively balanced.
Current purchasing prices for A356 aluminum ingot users have been maintained at A00 aluminum price plus a processing fee of RMB 800-900/mt, which has been moving stably after reaching its peak RMB 1,000/mt during the end of 2010. Though downstream consumption in June was good, as July and August belong to low seasons, SMM expects operating rates of A356 aluminum ingot to continuously decline in the coming months, posing downward pressures for aluminum prices.
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