Supply-demand imbalance coupled with cost disturbances led to a decline in ADC12 prices in Q2
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Update time : 2025-05-12 16:46:39
Impacted by the US reciprocal tariff, the most-traded SHFE aluminium contract began a sharp decline from above the RMB 20,000 threshold in early April, and then continued to oscillate within the range of RMB 19,000-20,000 per tonne. In April (calendar month), the SMM average spot aluminium price was recorded at RMB 19,952 per tonne, down 3.8 per cent M-o-M from the previous month. The price of ADC12 continued its downward trend from March, with the average price in April falling 2.5 per cent M-o-M. As of May 9, the SMM ADC12 quote fell RMB 700 per tonne MoM to RMB 20,200-20,400 per tonneOn the cost side, at the beginning of the month, influenced by the correction of bulk commodities, the prices of raw materials such as aluminium scrap, copper, and silicon declined, driving down the overall cost of ADC12 and slightly improving the industry's theoretical profitability. However, in the latter part of the month, as trade tensions eased, the rebound in aluminium scrap and copper prices led to an overall increase in raw material costs. Although silicon prices continued to decline, constrained by the struggle to rise in the prices of alloy ingot finished products, the industry's profit margins narrowed again and gradually turned into losses.
