Aluminum Rod Market Supply Tightens Despite Off-Season, Driven by Production Adjustments

December 27, 2024—

Aluminum rod: Despite the year-end and the gradual transition of downstream consumption into the off-season, the supply side, constrained by the pressure of liquid aluminum consumption, maintained overall operating capacity at a high level. Northern enterprises generally experienced slight production cuts, while aluminum rod enterprises in south China operated steadily, leading to a slight tightening in aluminum rod market supply. According to the SMM survey, aluminum rod manufacturers reported that although January-February is typically an off-season for consumption, there might be concentrated stockpiling demand before the holiday. Considering that aluminum rod processing fees are slightly more advantageous compared to aluminum billet, manufacturers may adopt an operational strategy of reducing aluminum billet production and increasing finished product inventories of aluminum rods...