Chinese Aluminum Foil Makers Turn to Domestic Market as Anti-Dumping Hurts Exports, SMM Says

[SMM Aluminum Alloy Daily Review] Futures side, the most-traded aluminum alloy 2604 contract opened at 23,710 yuan/mt in the morning session and then quickly climbed, once touching an intraday high of 23,945 yuan/mt. Bulls then lost momentum, and prices pulled back step by step. In the afternoon, it fluctuated rangebound, and late in the session it fell further to an intraday low of 23,575 yuan/mt, finally closing at 23,725 yuan/mt, up slightly 0.17% from the previous trading day. Spot side, the ADC12 market was largely stable overall today, with a few enterprises raising quotes slightly. Supported by a modest strengthening in aluminum scrap prices, cost support for some enterprises improved somewhat, but due to limited fluctuations in aluminum prices and generally weak downstream demand,

March 16, Yongzhen Co., Ltd. issued an announcement stating that the company plans to invest 480 million yuan to implement a "Technical Upgrading Project for the Annual Production of 70,000 Tons of Ultra-Wide Thin-Wall Flat Extruded Aluminum Profiles and Their Deep-Processed Products" at its existing plant in Changzhou, Jiangsu Province. The project has a construction period of 12 months and is expected to commence on March 25. Through technological upgrades to the existing production lines, the company will achieve an annual production capacity of 70,000 tons of ultra-wide thin-walled flat extruded profiles. 40,000 tons of profiles will be used for deep processing, ultimately forming an annual production capacity of 40,000 tons of deep-processed products for new energy applications.

On March 16, Wanshun New Materials issued an announcement stating that its wholly-owned subsidiary, Jiangsu Zhongji Composite Materials (Hong Kong) Co., Ltd., plans to acquire 100% equity of Eurofoil Luxembourg S.A. from Aluminium Investment Company Limited for €12,388,900 in cash. Upon completion of the transaction, the company will hold 100% equity of Eurofoil Luxembourg, which will be included in the company's consolidated financial statements. According to the valuation, the market value of Eurofoil Luxembourg's net assets is €32,170,300, representing an increase of €11,150,100 over the book net assets, a 53.04% increase.