ADC12 Aluminum Alloy Prices Drop Amid Weak Demand and Increased Competition

On April 21, Zhongfu Industrial announced that its board of directors had convened and approved the "Proposal on New Project Investment by a Wholly-Owned Third-Tier Subsidiary." The company's wholly-owned third-tier subsidiary, Qingchuan Zhongfu Secondary Aluminum Alloy Co., Ltd., planned to invest in the construction of a secondary aluminum alloy project with an annual capacity of 250,000 mt. The total project investment was 363 million yuan, funded through self-raised capital. The construction period was two years. Upon reaching full production, the project was expected to generate annual pre-tax revenue of 5.3015 billion yuan, average annual net profit of 23.02 million yuan, and an internal rate of return on total investment of 8.6% (after tax).

On April 20, Chalco Chairman He Wenjiang stated at the 2025 annual results briefing held in the afternoon that, affected by price structures at home and abroad as well as tariffs and other factors, the export window for China's primary aluminum and primary aluminum alloys had long remained closed. Recently, due to the impact of the Middle East conflict, overseas price increases exceeded those in China, and combined with fluctuations in the US dollar exchange rate and other factors, exports of domestic primary aluminum and primary aluminum alloys may see some recovery.

On April 20, Zhang Ruizhong, General Manager of Aluminum Corporation of China, stated at the 2025 annual results briefing that aluminum prices had risen since the beginning of this year, primarily driven by factors such as rigid global supply constraints, energy cost support, and a widening supply-demand gap outside China. He noted that the current high inventory was temporary, and as downstream sectors fully entered the peak season in Q2, inventory would gradually enter a destocking phase. Most Japanese enterprises typically maintained only about two months of inventory for parts or raw materials, meaning that many enterprises may begin to experience supply disruptions by the end of this month or early May.