China’s A356 Aluminum Alloy Output Down in Feb. due to Chinese New Year

SHANGHAI, Feb. 24 (SMM) – China’s output of A356 aluminum alloy dropped in February since the Chinese New Year holiday allowed fewer working days in the month, Shanghai Metals Market has learned.

Output at producers surveyed by SMM totaled 110,000 tonnes this month, down 5,500 tonnes from January. Operating rates averaged 66.67%, also down 3.33% month-on-month. 

Processing charges for alloy delivered to factory held stable at 680 yuan ($ 111) per tonne, but were heard to be 700 yuan per tonne at selected producers.

On the demand side, consumption by wheel manufacturers was sluggish. First, wheel manufacturers reopened later following Chinese New year than in years past. Second, persistently falling aluminum prices prompted wheel manufacturers to deplete raw material stocks on hand.

SMM expected consumption of A356 aluminum alloy to increase during March as growing orders and stable aluminum prices would give wheel makers incentives to build up raw materials. Processing charges for alloy delivered to factories were expected between 650-700 yuan per tonne.