BEIJING (Asian Metal) 12 Apr 21 - Yadelin Machinery (Suzhou) Co., Ltd., a major secondary aluminum alloy producer in East China, began to upgrade a 35-ton smelting furnace on March 28. This upgrade will not delay the delivery of their orders and the output in April might decline slightly by about 3.22%.

A source from the company reported that the company has ten furnaces, including two 20-ton and two 10-ton single furnaces. One of the production lines is equipped with a 35-ton top furnace and two 10-ton furnaces, and another production line is equipped with a 50-ton top furnace and two 25-ton smelting furnaces. On March 28, they began to upgrade the 35-ton furnace from into a 40-ton furnace. The upgrade might last for two months and they can resume production in late June. The remaining nine furnaces are all in operation now. "We might produce about 6,000t in April, down slightly from about 6,200t in March," the source said, reckoning that prices for Chinese secondary aluminum alloy ingot would decline in the coming week as the demand for the material is weak now.

With an annual production capacity of 100,000t, the producer produced about 53,000t in 2020 and plans to produce 72,000t in 2021, holding about 400t of stocks now.

Mainstream prices for aluminum alloy ingot ADC12 in Jiangsu were RMB17,300-17,500/t (USD2,640-2,671/t) EXW D/P last Friday, stable from the previous trading day.