The operating rate of primary aluminum alloy was still supported in the off-season [SMM Analysis]

Publicado: Jul 3, 2024 11:52
Fuente: SMM
According to the SMM survey, the operating rate of China's primary aluminum alloy industry in June was 51.88%, up 1.68 percentage points MoM and 8.72 percentage points YoY.

According to the SMM survey, the operating rate of China's primary aluminum alloy industry in June was 51.88%, up 1.68 percentage points MoM and 8.72 percentage points YoY.

Overall, the performance of the primary aluminum alloy market in June met expectations. Although new orders gradually declined, in order to maintain market share and increase the proportion of aluminum liquid alloying, few producers reduced their operating rates in June. Some even slightly increased production, resulting in a slight rise in the industry's operating rate.

More than 90% of primary aluminum alloy products are used in the transportation sector. However, in recent years, end-user demand in China's transportation sector has not grown significantly. With the arrival of the traditional off-season from July to August, many downstream producers are about to enter the high-temperature holiday period, and industry demand is bound to weaken further. As demand continues to decline, some producers may slightly reduce their operating rates. Although the industry's operating rate is expected to decrease in July, the decline is not expected to be significant due to the support from the aluminum liquid alloying ratio task.

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The operating rate of primary aluminum alloy was still supported in the off-season [SMM Analysis] - Shanghai Metals Market (SMM)