China Guangzhou Jinbang to cut alloy output 20%

摘要

China’s Guangzhou Jinbang NonferrousnAlloys plans to reduce its alloy produc-ntion by about 20% beginning July on thenback of lower demand and a weak mar-nket, a company source said Tuesday. “Wenplan to start cutting output by about onenfifth starting in July because we’ve seennfewer sales orders recently, so there’s nonpoint producing to capacity,” the sourcensaid. “We also expect demand to staynweak in the second half of the year,nespecially from the auto sector, so we’renlikely to be producing less for the rest ofnthe year,” the source added. With anweaker-than-expected market situationnthis year, the company has also delayednplans to raise output to a full 150,000nmt/year by October and halted indefinite-nly all plans to develop the export trade in 2010. It was previously expecting to pro-nduce about 60,000-80,000 mt of totalnalloys this year, similar to output inn2009, “but now this will likely be evennlower,” the source said. Of the company’sntotal alloys output in 2009, about 50-n60% consists of ADC12. But in 2010,ndue to changing customer requirementsnand market movements, ADC12 willnmake up just about 30% of the compa-nny’s overall alloy output, the sourcennoted. Guangzhou Jinbang had also pre-nviously planned to start exporting ADC12nin 2010, with a target tonnage of 3,000-n5,000 mt. “But market conditions do notnjustify any exports now and we arenunlikely to consider exporting until maybennext year,” the source said.