SHANGHAI, Dec. 27 (SMM) -- Supply of A356 aluminum alloy ingot in east China is relatively tight currently, especially for goods from north China.
According to SMM sources, there are three reasons behind tight supply of A356 aluminum alloy ingot in east China. First, transportation bottlenecks. It has become difficult for transportation of aluminum alloy ingot from north China to other regions since the start of winter months, especially in Inner Mongolia where train supplies are tight, with coal transportation having the priority. Second, the iron content in aluminum produced by a large-scale aluminum producer in north China is slightly high, and the producer can not control the iron content in its A356 aluminum alloy ingot effectively, also resulting in supply shortages. Third, idled A356 aluminum alloy ingot production capacity in Henan province caused by energy conservation and emission reduction policy remained offline currently, further tightening market supply of A356 aluminum alloy ingot.
A356 aluminum alloy ingot is a major raw material for aluminum wheel production. Market supply of aluminum wheel was limited, and the amount of goods from north China to east China decreased since the start of December, both allowing A356 aluminum alloy ingot prices in east China to increase. At present, Zhejiang Huadong Aluminum Company, the largest A356 aluminum alloy ingot producer in east China, has taken the lead in raising prices by RMB 100/mt. SMM predicts tight supply of A356 aluminum alloy ingot in east China will remain unchanged until the beginning of 2011.
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