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...