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Aluminum Rod Processing Fees Fall Further on Fierce Competition

iconOct 27, 2011 16:44
Source:SMM
Aluminum rod market became more sluggish recently due to weak downstream consumption, with aluminum rod processing fee in many regions falling further.

SHANGHAI, Oct. 27 (SMM) -- Aluminum rod market became more sluggish recently due to weak downstream consumption, with aluminum rod processing fee in many regions falling further. The processing fee of 6063 aluminum rod transported from Shandong and Henan provinces to Wuxi was RMB 550/mt before China’s National Day holiday, but has fallen to RMB 500/mt recently. Aluminum rod processing fee in Guangdong also declined from RMB 600/mt to RMB 550/mt.

Recently, some aluminum rod brands exited the east China market due to weak consumption, and brands available in the market were mainly from Shandong Innovation Group, Henan Zhongfu Industrial Company, and Linzhou Linfeng Aluminium & Electricity Company. In the meantime, some aluminum rod producers changed sales pattern and said they would expand sales channel with the help of traders. Most aluminum rod producers sold goods directly to aluminum profile producers previously when aluminum rod markets were bullish.

 

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