Secondary Aluminum Alloy Enterprises Steadily Resume Operations After Chinese New Year [SMM Analysis]

After the Chinese New Year holiday, secondary aluminum alloy enterprises gradually entered the stage of resuming production, with industry operations transitioning smoothly from "concentrated shutdowns" to "orderly recovery." Survey samples showed that most enterprises resumed work between the eighth and fifteenth day of the first lunar month, with relatively concentrated resumption times, but the pace varied. The duration of shutdowns was mainly 9-15 days, which is a typical period for the Chinese New Year holiday; some enterprises extended their shutdowns to over 20 days due to equipment maintenance or order scheduling, with a few reaching nearly 30 days, resulting in a relatively slower resumption progress. Specific resumption details are as follows: 

In the first week after the holiday, the operating rate of leading enterprises in the industry rebounded by 6.3 percentage points to 53.1%, indicating a relatively concentrated start of production resumptions. However, during the initial stage of resuming production, enterprises were still in the phase of equipment debugging and furnace preheating, and actual production had not yet returned to the normal level before the holiday. The release of supply showed a gradual recovery. In terms of structure, large and medium-sized enterprises experienced a relatively faster capacity ramp-up; small and medium-sized enterprises, affected by insufficient orders and the procurement pace of raw materials, saw a milder recovery in their operating rates. 

With enterprises fully resuming their normal production pace after the Lantern Festival, production in early March is expected to further increase, and market supply will gradually rise. The overall resumption of work in the industry is currently stable, and the pace of production recovery generally meets expectations, but attention should be paid to the phased impact of regional policy changes on the operation schedules of some enterprises.