Since August, the Chongqing Meteorological Observatory has continued to issue red warning signals for high temperature, especially in recent days, the temperature has reached as high as 45 ℃. Under such harsh conditions, the tension of electricity consumption in the region has been exacerbated. In order to ensure electricity consumption for people’s livelihood, Chongqing’s major industrial parks have issued orders to use electricity at peak times or to implement high temperature holidays. The initial staggered power consumption time is from August 15th to August 24th, while some companies have stated that they will directly suspend production for a week or extend the power consumption control time to the beginning of next month.
As one of the concentrated places of die-casting enterprises and one of the mainstream consumers in my country, the impact of this power shortage cannot be underestimated. According to Mysteel statistics, under normal circumstances, the monthly demand for Chongqing’s die-casting market reaches 58,000 tons. However, due to the general lack of demand this year, the demand has plummeted by 20%-30%. Even if there is a corresponding reduction on the supply side, the entire Chongqing market is still in a situation of oversupply.
On the basis of the original off-season of the industry, it has encountered a once-in-a-decade staggered production, which further weakened the demand for die casting and suppressed the price of ADC12.
From the perspective of demand, the alloy ingot enterprises in the entire southwest region will face a big test: on the one hand, the price of materials remains high, the procurement is relatively difficult, and the cost is high; but in the face of weakened downstream demand, the pressure on production and operation of enterprises will be further If it increases, it will consider continuing to reduce production on a small scale. On the other hand, the price of ADC12 will continue to be under pressure due to the low-priced supply of traders and the weakening of demand.