Sluggish Demand Caused ADC12 Secondary Aluminium Alloy Prices To Drop Below Aluminium Prices

SHANGHAI, Jun 13 (SMM) –The prices of ADC12 secondary aluminium alloy dipped 50 yuan/mt from a week ago to 18,600 yuan/mt as of last Friday, even below A00 aluminium prices. Many secondary aluminium alloy plants were suffering losses and thus kept raw material inventories at a low level. Most secondary aluminium alloy plants were still plagued by poor new orders, except for a few who have received more orders from auto parts factories that will sustain their production through the end of June. Large secondary aluminium alloy plants maintained stable production, whereas small and medium-sized ones continued to cut output due to insufficient orders and high costs. Overseas suppliers offered ADC12 at $2,230-2,260/mt. Chinese importers still suffered small losses as the exchange rate of RMB hit a new low for this year. The price inversion between ADC12 secondary aluminium alloy and A00 aluminium is likely to deepen amid slack demand for the former.