Slack Demand Prevents Secondary Aluminium Alloy Prices From Gaining As Much As Aluminium Prices

SHANGHAI, Jun 5 (SMM) –The prices of ADC12 secondary aluminium alloy rose 150 yuan/mt from a week ago to 18,650 yuan/mt as of last Friday. Weak demand curbed gains of ADC12 prices. Some traders lowered offers to 17,700-17,900 yuan/mt amid fierce market competitions. Operating rates of secondary aluminium alloy plants remained low last week and may drop soon as die-casting plants plan to cut output further in June, which will hurt demand for secondary aluminium alloy. Even though import quotations were cut to $2,240-2,260/mt, Chinese ADC12 importers still suffered losses of 300-400 yuan/mt as RMB has depreciated. ADC12 prices are vulnerable to decline in the off-season.