Chinese ADC12 alloy prices rise on strong Japanese demand

摘要

The weekly Chinese ADC12 export price was assessed at $1,680-$1,690/ mt Sept. 1, up from $1,650-$1,660/mt FOB a week ago. The market saw spot activity returning after a two-week gap. Japanese demand remained strong and most shrugged off the higher prices and were actively looking for cargoes, sources said. “OEMs are going to restart. The Japanese side will continue buying; [they] need a lot of material,” a Japan-based trader said. He indicated his inventories were low, which was similar to what many traders were facing. Japanese indicative target price rose to as high as $1,700/mt CIF Japan, due to lack of ADC12 and strong demand from consumers. “Japanese production cannot [satisfy] the whole Japanese demand,” a second trader said, highlighting the reliance on ADC12 imports by Japanese customers. The trader said the current scrap import regulation was biting into Chinese supply as “even some shipping liners had stopped shipping scrap into China, and current Chinese offers for ingots are limited in quantity.” Japanese traders were heard to be sourcing for November- December delivery cargoes for December-January consumption.