[ SMM Aluminum Fabrication Weekly Survey ] Operating Rates of Downstream Aluminum Producers Rose Slightly This Week, with Divergence Across Sectors Continuing

November 5, 2026 news:

This week, the operating rate of leading downstream aluminum processing enterprises in China remained stable with a slight uptick overall, edging up 0.1% WoW. Performance was mixed across sectors, with the industry continuing a mild recovery trend. The operating rate of primary aluminum alloy rebounded 0.6 percentage points to 61.4%, as improved orders and automakers' year-end push for annual targets drove the uptick, with a positive short-term outlook. The operating rate of aluminum wire and cable rose 0.4 percentage points to 64.8%, supported by recovering PV demand and profit restoration, though the sustainability of the uptrend remains to be seen. The operating rate of secondary aluminum rebounded 0.6 percentage points to 53.9%, with mediocre end-use orders and persistent raw material constraints keeping short-term operations largely stable. The operating rate of aluminum extrusion held flat at 52.5%, as the construction segment entered the off-season while industrial demand from energy storage and automobiles showed strong resilience, with a slight pullback expected ahead. The operating rate of aluminum plate/sheet and strip slipped 0.4 percentage points to 68.8%, as the off-season effect materialized and order gaps became apparent, with further contraction expected in the short term. The operating rate of aluminum foil edged down 0.1 percentage points to 71.0%, as battery foil production schedules pulled back marginally while packaging foil's peak season provided a floor, keeping operations high but under pressure. Overall, this week's industry operating rate edged up on improved orders and profit restoration, but divergence across sectors was pronounced, with mixed performance and mild consolidation expected in the near term.

Primary aluminum alloy: This week, the operating rate of leading primary aluminum alloy producers in China came in at 61.4%, up 0.6 percentage points WoW, with overall operating levels somewhat higher than earlier. From the enterprise side, orders at leading producers were relatively stable after entering November and improved MoM, with noticeably better production scheduling and a faster production pace that lifted output slightly, serving as the main support for this week's operating rate uptick. From the downstream demand side, automakers have entered their year-end sprint phase, and end-use demand growth provided a certain boost to primary aluminum alloy production, with the improvement in demand adding further momentum to the operating rate uptick. Meanwhile, aluminum prices are still trending lower, and the price pullback has eased wait-and-see sentiment in the market, with traders showing stronger inquiry interest and warmer trading sentiment, resulting in more transactions overall and higher market activity, which also indirectly supported the operating rate uptick. Overall, improved orders, automakers' year-end push for annual targets, and the recovery in transactions driven by lower aluminum prices jointly pushed this week's operating rate higher, with a positive short-term industry trend and the overall operating rate expected to continue rising next week.

Aluminum plate/sheet and strip: This week, the operating rate of leading aluminum plate/sheet and strip producers was 68.8%, down 0.4 percentage points WoW, as the off-season effect began to materialize. By segment, traditional demand continued to weaken, with can stock demand expected to remain sluggish through year-end; structural support was concentrated in the new energy sector, as battery product export tax rebates will be canceled starting in 2027, and the energy storage export rush kept brazing material production lines running at full capacity. Overall feedback indicates that after front-loading orders in Q4, shipment performance this week continued to deteriorate, finished-product destocking progress fell short of earlier expectations, and the November order gap has begun to become apparent. Overall, the seasonal pullback in traditional demand combined with the visible order gap will keep aluminum plate/sheet and strip operating rates contracting in the short term.

Aluminum wire and cable: This week, the operating rate of China's aluminum wire and cable industry edged up to 64.8%, up 0.4 percentage points WoW, with producers showing stronger willingness to produce than earlier. On the production side, sample enterprise loads remained stable with a slight uptick, and production lines previously constrained by high aluminum prices gradually resumed operations. On the order side, structure was divergent: the Q4 recovery in PV installations has already transmitted to production schedules, driving a recovery in new energy orders; on the grid side, the fifth batch of ultra-high voltage transmission orders was awarded, replenishing enterprises' orders on hand. Given that State Grid orders are mostly signed at locked prices, the recent pullback in aluminum prices has significantly eased cost pressure, and profit restoration on existing orders has actually boosted production scheduling enthusiasm. Overall, profit restoration and PV demand jointly supported the slight rebound in operating rates, but this uptick stemmed more from cost concessions than from order volume growth, and whether it can be sustained still depends on State Grid delivery pace and whether year-end PV grid connections can continue to push volumes.

Aluminum extrusion: This week, the operating rate of aluminum extrusion came in at 52.5%, flat WoW. In the construction extrusion segment, the aluminum price center shifted lower during the week, and downstream restocking on demand early in the week drove a recovery in procurement volume, but the transmission to operating rates was limited, with overall weekly operations little changed; downstream players remained in a strong wait-and-see mood on aluminum price trends, with procurement largely need-based and end-use demand still weak. As temperatures gradually decline, the outdoor construction window in northern China continues to narrow, and engineering-side demand is expected to pull back further. In the industrial extrusion segment, overall operations held stable, with orders for automotive parts extrusion stabilizing under peak-season support and utility-scale energy storage orders remaining resilient; PV extrusion production schedules for November were lower than October, with weekly operations little changed, and some enterprises noted that despite new order replenishment ahead, it would still be difficult to surpass October's production schedule levels, leaving operating rates under downward pressure. Overall, construction extrusion has entered the industry off-season with expectations of weakening orders ahead; industrial extrusion is diverging internally, with strong resilience in energy storage and automotive demand but PV extrusion under pressure, and aluminum extrusion operating rates are expected to pull back slightly going forward.

Aluminum foil: This week, the operating rate of leading aluminum foil producers was 71.0%, down 0.1 percentage points WoW. Production and sales remained largely unchanged, with battery foil and brazing foil still in stable production, but the support side showed marginal loosening—directly affected by lower production schedule expectations at leading battery cell enterprises, some battery aluminum foil producers have revised their November-December production schedules down by about 5%-10% from earlier, signaling volume cuts even under current full-capacity operations. Packaging foil provided an offset, as the packaging segment remains in its peak demand season with relatively ample orders on hand. Air-conditioner foil demand remained substantively in the doldrums. Overall, with battery foil showing marginal loosening and air-conditioner foil remaining sluggish, the packaging segment will serve as the main floor, keeping aluminum foil operating rates high but under slight pressure in the short term, with upward momentum weakening.

Secondary aluminum: This week, the operating rate of leading secondary aluminum producers rebounded 0.6 percentage points WoW to 53.9%, maintaining the recovery trend, though the overall improvement was limited and operating performance diverged among enterprises. November end-use orders were mediocre overall, with only some enterprises having relatively sufficient orders to provide a certain support to operations, and the industry still lacked sustained momentum for production ramp-up. On the raw material side, weaker aluminum prices dragged the aluminum scrap price center lower, but tight compliant supply and tax invoice regulatory constraints limited the decline in raw material prices, leaving enterprises still facing cost pressure and procurement difficulties, with production arrangements generally cautious and focused on existing orders. Overall, short-term operating rates are expected to remain largely stable, with limited room for further improvement due to insufficient demand growth and compliant raw material supply constraints.