China Remelted Rod Output Drops 20% in July Amid Supply Constraints; Anticipated Production Resumption Ahead of Peak Season

Published: Aug 23, 2024 21:04

Save

On the supply side of remelted rods, constrained by factors such as policy changes, high costs of using scrap, limited scrap aluminum supply, and safety inspections in some regions of eastern China, the July output of SMM's China remelted rod sample decreased by 35,000 tonnes from the previous month to 139,600 tonnes, a decrease of nearly 20%; the operating rate fell by 8 percentage points from the previous month to 32%. Overall, as we enter August, with the traditional peak season of "Golden September and Silver October" approaching, downstream demand has slightly improved, and it is expected that there will be room for resumption of production in rod plants in northwest regions such as Xinjiang and Qinghai. Subsequently, the operating rate of domestic aluminum billet will rebound. SMM predicts that...

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

9 hours ago

[SMM Flash News] Combined Production Cuts at Three Middle Eastern Aluminum Smelters Reached About 2.43 Million mt

On March 29, the UAE’s EGA aluminum plant was hit by Iranian missiles and drones, causing severe damage to its facilities. A damage assessment has been launched, and widespread production cuts were expected, involving total capacity of about 1.55 million mt. Combined with the production cut process initiated earlier this month by Alba and Qatalum, the total scale of production cuts at the three aluminum plants was about 2.43 million mt.

9 hours ago

11 hours ago

Aluminum Processing PMI Rebounded Sharply to 66 in March, Expected to Pull Back in April[SMM Analysis]

[SMM Analysis]Aluminum Processing PMI Rebounded Sharply to 66 in March, Expected to Pull Back in April

11 hours ago

13 hours ago

【SMM Aluminum Flash News】Over 3bn aluminium cans and PET bottles returned as Sweden nears 90% recycling target

The Swedish deposit return system (DRS) operator Returpack/Pantamera reported that in 2025, over 3 billion PET bottles and aluminium cans were returned via Sweden’s DRS. Compared to the record of 2024, the 2025 count marks an increase of 130 million. The operator adds that returning the aluminium and PET containers via the deposit system cuts the carbon footprint by half, thereby promoting recycling and sustainability. 2025 data shows that material customers received 27,826 tonnes of aluminium and 24,835 tonnes of PET. On average, each person returned 283 containers, reflecting an improvement of the 2024 performance by 4 per cent. The overall return rate of Sweden also increased by 88.4 per cent, bringing the nation close to its target of a 90 per cent return rate.

13 hours ago