Offers for Chinese domestic spot aluminum alloy ADC12 held steady after the previous week's fall due to a plunge in the primary aluminum price, sources said Tuesday.
Despite the rebound in the primary aluminum price this week, sources said ADC12 offers had remained under pressure due to thinning fresh demand as the year was coming to an end.
Platts weekly assessment of China domestic ADC12 was Yuan 12,000-12,400/mt ($1,875-$1,938/mt) ex-works Tuesday, unchanged from the previous week.
"Inquiries are slowing down and there are very few new orders. Most factories are simply fulfilling their existing orders," said an east China-based producer, who indicated offers around Yuan 12,300/mt ex-works.
An East China-based analyst said offers were wide ranging from Yuan 11,300-12,300/mt ex-works but reckoned that a realistic range was probably at Yuan 12,000-12,300/mt and those around the Yuan 11,300-11,400/mt were probably off-grade material.
A South China-based producer also said that realistic offers were around Yuan 12,000/mt, while another east China-based producer, however, was offering below Yuan 12,000/mt.
"The domestic demand is thinning as companies have no funds at the year end period. If there's a buyer, I am willing to sell at Yuan 11,800/mt.
The market is very competitive," this eastern Chinese producer added.
The southern Chinese producer added: "Lower prices will not help as the demand is lacking."
Chinese domestic spot aluminum ingot was priced at Yuan 10,080-10,120/mt Tuesday, compared with Yuan 9,730-9,770/mt last Tuesday, according to state-owned nonferrous metals information division Beijing Antaike.
December aluminum futures were at Yuan 10,240/mt on the Shanghai Futures Exchange Tuesday, compared with Yuan 9,870/mt last Tuesday.
In Japan, buyers said some Chinese producers had raised offers by $10-$20/mt Monday to $1,580-$1,610/mt CIF Japan, following a jump in the London Metal Exchange price Friday, and buyers showed mixed reactions.
Platts lifted its ADC12 export price assessment to $1,590-$1,630/mt FOB China Tuesday, up from $1,590-$1,620/mt the previous week as heard bids, offers and done deals were higher.
One Japanese trader had sold 100-200 mt for January-February loading to a consumer at $1,600/mt CIF Japan. A Japanese consumer said there were bids at less than $1,600/mt CIF Japan which some Chinese producers rejected.
"I am waiting as general sentiment is not good. We can buy from Russia and Africa at lower prices," he said, adding that non-Chinese producers were offering $1,580-$1,590/mt CIF.
"Last week, primary aluminum prices plunged, dragging ADC12 offers down.
At the end of last week, primary aluminum prices rebounded, giving ADC12 offers a lift," said an east China-based producer, who reckoned offers were around $1,600/mt CIF.
Another East China-based producer said primary aluminum prices had rebounded late last week mainly on news of the central Chinese government's intention to stock up on aluminum and Chinese producers' plan to cut production in view of weak prices.
This second eastern Chinese producer said offers have gone above $1,600/mt CIF due to higher aluminum prices.
"We are offering at $1,640/mt CIF, higher than most market indications due to higher production costs. The aluminum scrap price is expected to rise on tightening supply as collection and transportation are difficult during winter," added the second eastern Chinese producer, who last heard import offer for zorba grade of aluminum scrap at $1,170-$1,180/mt CIF China.
The first trader heard US west coast tense aluminum scrap at 52-53 cents/lb and tense tabor at 44-45 cents/lb and US east coast prices were 2-3 cents/lb higher than those from the US west coast.
A third East China-based producer said she had sold at $1,610/mt CIF this week, a South China-based producer heard a week on week gain of $10-$20/mt to around $1,600/mt CIF, while an East China-based analyst generally heard offers in excess of $1,600/mt CIF.
"The Japanese import market appeared to quite active this week. I have received several inquiries and have one closed deal after months of no trades," this third eastern producer said.
