ADC12 Secondary Aluminium Alloy Prices To Extend Declines

SHANGHAI, May 15 (SMM) - The prices of ADC12 secondary aluminium alloy lost 300 yuan/mt from a week ago to 18,500 yuan/mt as of last Friday. The end consumption remained sluggish. According to data from the China Association of Automobile Manufacturers, China’s automobile production and sales were 2.13 million units and 2.16 million units respectively in April, down 17.5% MoM and 11.9% MoM. Price cuts by auto makers triggered strong wait-and-see sentiment among consumers and consumption recovery fell short of expectations. The demand for other end sectors, such as communication and machinery, was also relatively weak. The operating rates of die-casting factories declined. On the supply side, secondary aluminium alloy plants resumed production after the Labour Day holiday. In view of poor orders and losses, the operating rates will continue to fall in the short term. Overseas ADC12 was quoted at $2,330-2,350/mt to Chinese buyers. Due to the rapid decline in domestic prices, the immediate import losses expanded to around 800 yuan/mt. ADC12 prices are expected to extend declines, but the downside room will be limited under the support of cost.