FOCUS: US-China trade war pushes domestic Chinese ADC 12 prices up; export prices down on tolling deals

Aluminium ingot ADC 12 export prices fell after China dealt a serious blow to the raw material market with a blanket 25% tariff on US aluminium scrap.

The move by China has meant that more domestic producers are looking to tolling deals to avoid paying the 25% import tax. Under the tolling deals, Chinese secondary alloy producers can import raw materials such as aluminium scrap from overseas and produce products like ADC 12, which are then re-exported.
“Demand is still stable in China but the price for the [ADC 12] we export is going down,” a producer source said.

A weaker Japanese yen has also meant some international buyers are buying more ADC 12 because they pay in US dollars, a second producer...

Published

Shivani Singh

Susan Zou

April 04, 2018

12:40 GMT

Singapore, Shanghai