SHANGHAI, Jul 17 (SMM) – Chinese secondary aluminium producers further scaled back their operations in June, as demand faltered as car makers and dealers attempted to clear inventories before new vehicle emission standards took effect in July.
Automobiles are the major consumer of secondary aluminium.
An SMM survey showed that operating rates across secondary aluminium producers in China fell for three consecutive months, standing at 52.24% in June. This was down 1.49 percentage points from May and 0.5 percentage point from June 2018.
Continued weakness in the car market grew inventories of finished goods across secondary aluminium producers, which was another reason behind greater production curtailments in June.
Operating rates across secondary aluminium producers are likely to extend their declines in July, falling below 50%, in anticipation of poorer demand after massive car sales promotion in previous months and as a traditional low season grinds on.
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