Operating Rates at China’s Cast Aluminum Alloy Producers Hit New Lows

SHANGHAI, Aug. 27 (SMM) – SMM’s latest survey reveals that operating rates at domestic cast aluminum alloy producers for July dropped below 60% for the first time in two years, at 56.97%, down 6.9% MoM and 9.12% YoY. Shanghai Die Casting Technology Association will, together with SMM, hold “2012 Summit Forum on Development of Cast Aluminum Industrial Chain” in Shanghai from September 14 to 15.  

Lower operating rates can be best explained by persistently weak consumption and hot weather, which forced some cast aluminum alloy producers to cut or halt production.

Operating rates at some die-casting producers rebounded somewhat entering August, but their demand for cast aluminum alloys failed to pick up as they were pessimistic about aluminum prices. Operating rates at cast aluminum alloy producers will less likely rebound in August given sluggish exports.

China’s 12th Five-year Plan will provide opportunities for cast aluminum alloy industry. “China’s 12th Five-year Plan for New Material” pointed out that aluminum alloy will be given top priority as new material in the next five years and its demand will continue to rise. Meanwhile, “Energy Saving and New Energy Vehicles Development Plan” stated China’s output and sales of new energy vehicles will hit more than 500,000 by 2015 and growing demand for lightweight vehicles will stimulate demand for aluminum alloy plate and sheet. 
 
It is known that the summit will focus on the current situation and future development of China’s scrap aluminum recycling, the present state and price trend of China’s cast aluminum alloy industry and other related topics.