Aluminium plate/sheet strip, foil producers to operate at lower level in Oct

SHANGHAI, Oct 18 (SMM) – Operating rates across producers of aluminium plate/sheet strip and foil are likely to fall to 66% in October, a month of traditionally low demand for aluminium, as exports are likely to drop nearly 10% on the month. Rates across foil producers are estimated at 87%, and at 63% across producers of plate/sheet and strip.

Consumption of primary aluminium is unlikely to pick up this year as poor orders and cash flow issues close some processors in east China and Shandong, and as construction projects suspend in the heating season.

While November will conitnue to be a month of high demand for aluminium semis, the current markets across real estate, transportation and home appliances are likely to account for poor orders across producers of aluminum plate/sheet, strip and foil during November-December.

In September, weak demand kept operating rates across producers of aluminium plate/sheet, strip and foil at 68.4%. Robust demand in August and poor demand from end-user sectors accounted for the sluggish month of September.

Rates across large producers rose to 71. 9% in September, and rates across medium-size producers increased to 54.1%. The lifting of production restrictions that were implemented during July-August accounted for the growth.

Environmental scrutiny across Shandong and Jiangsu before the National Day holiday lowered rates across small producers to 21% in September. Rates across producers of aluminium plate/sheet and strip stood at 64.9%, while rates across foil producers dropped to 86.9%.

Last month, orders of automobile aluminium semis, metal packaging, as well as computer, communication and consumer electronics materials, light-gauge foil and household foil were brisk, while other products saw poor orders. Export orders slid. Demand for automobile aluminium semis weakened in October.