Secondary Aluminum Industry Operating Rate Falls to 56.4% Amid Weaker Demand and Policy Tightening

Published: May 14, 2026 18:40

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[SMM Aluminum Alloy Brief] The operating rate of secondary aluminum industry leaders fell 0.6 percentage points WoW to 56.4% this week. Operating rates showed mixed performance among enterprises during the week: the fading impact of the Labour Day holiday and capacity expansion by individual enterprises drove a partial rebound in operating rates, but production cuts were more widespread across the industry. Production cuts were mainly dragged by two factors: first, weakening demand. As the industry entered the off-season, orders from downstream die-casting enterprises remained sluggish, with procurement dominated by rigid demand and small batches. Second, policy tightening. The reverse invoicing policy was further tightened, making it more difficult to obtain invoiced raw materials, passiv

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