Home / Metal News / Weak Automobile Sales Cast Shadow on Aluminum Alloy Consumption

Weak Automobile Sales Cast Shadow on Aluminum Alloy Consumption

iconJun 16, 2011 17:19
Source:SMM

SHANGHAI, Jun. 16 (SMM) -- Weak automobile sales have cast a shadow on aluminum alloy ingot consumption.

Data released by the China Association of Automobile Manufacturers (CAAM) recently shows that China’s automobile production and sales remained weak during May, with production and sales at 1.35 million units and 1.38 million units, respectively, down 12.14% and 10.09% MoM, and down 4.89% and 3.98% YoY.

Automobile sector is the largest end-user of aluminum alloy ingot, with aluminum alloy consumption by this sector accounting for over 50% of total consumption. According to SMM sources, average aluminum consumption for per unit of vehicle is 127.5 kg, with casting aluminum alloy consumption exceeding 70%, so there is no doubt that poorer automobile sales will greatly affect aluminum alloy ingot markets.

SMM sources from domestic large secondary aluminum enterprises report that the growth of aluminum alloy ingot sales was lower than 2010 levels, with significantly lower sales of automobile serving as an important reason. The growth of automobile sales in 2011 was much lower than 2010 levels given significantly higher automobile sales at the end of 2010 ahead of the cancellation of China’s automobile incentive program, as well as massive Japanese earthquake. In this context, some secondary aluminum enterprises in east and south China faced great sales pressure, and they were generally unable to operate at full capacity.

With summer months coming, the traditional low demand period for automobile is approaching as well, and aluminum alloy ingot producers are now actively taking measures in order to weather the automobile consumption downturn successfully.     

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

Aluminum Al
automobile industry

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

SMM Events & Webinars

All