Chinese ADC12 Secondary Aluminium Alloy Importers Suffer Severe Losses Due To Falling Domestic Prices And A Weaker RMB

SHANGHAI, May 29 (SMM) – The prices of ADC12 secondary aluminium alloy fell 200 yuan/mt from a week ago to 18,500 yuan/mt as of last Friday. In terms of cost, aluminium scrap and silicon metal prices both declined last week. Prices of above-standard #553 silicon metal plunged 1,750 yuan/mt from early May to 13,600 yuan/mt on Friday, reducing ADC12 costs by 70-100 yuan/mt, with further decline expected in the future. On the demand side, die-casting plants lowered operating rates and secondary aluminium alloy purchases. On the supply side, many secondary aluminium alloy plants were suffering losses, triggering output cuts. Even though import quotations were cut to $2,250-2,270/mt, Chinese ADC12 importers still suffered losses of 400-600 yuan/mt due to falling domestic prices and a weaker yuan. Demand has no hope of improving, and ADC12 prices may hover sideways this week.