SHANGHAI, Dec. 16 (SMM) -- According to the China Association of Automobile Manufactures (CAAM), China’s automobile production and sales were 1.695 million units and 1.656 million units during November, respectively, up 7.95% and 8.6% MoM. SMM sources report that overall consumption of cast aluminum alloy was stable in November despite that auto production and sales improved significantly.
The growth of China’s auto production and sales slowed significantly in 2011 due to the ending of tax incentives for buying smaller-engine vehicles. Data from the CAAM shows that auto production and sales from January to November were 16.73 million units and 16.82 million units, only up 2% and 2.56% YoY. The significant declines in the growth of auto production and sales exert great impact on the growth of cast aluminum alloy consumption.
SMM sources report that auto dealers have been offering promotions activities at year’s end in order to ensure the annual results, attracting consumers to buy cars and in turn improving auto sales in November.
However, the pick-up of auto sales in November had limited positive impact on aluminum alloy consumption, since some automobile manufacturers and dealers were mainly reducing inventories given high stock levels. Overall auto production and sales were weak in October, and auto parts manufacturers held sufficient aluminum alloy inventories, so they were uneager to make purchases in November amid weak aluminum prices, causing aluminum alloy consumption to be stable despite rising auto production and sales.