Secondary Aluminum Industry Leaders' Operating Rate Drops to 53.4% Amid Cost and Demand Pressures

Published: Jun 11, 2026 15:39

Save

[SMM Aluminum Flash] The operating rate of secondary aluminum industry leaders fell by 0.5 percentage point WoW to 53.4% this week, pressured mainly by both cost and demand factors. Cost side, tightening invoice supervision across multiple regions stuck, leading to difficulties in compliant procurement and high tax burdens. Enterprise profits came under pressure and even turned negative, prompting some producers to cut or suspend production. Demand side, the downstream continued its weak off-season pattern, with demand from end-users such as OEMs pulling back. Market transactions were dominated by rigid restocking. If the invoice supply issue continues to worsen, along with a further deepening of the off-season, the industry operating rate will still face downward pressure, and the supply-

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 mins ago

SHFE Cast Aluminum Alloy Warrants Decrease by 1,293 mt to 37,931 mt on June 11

[SMM Flash] SHFE data showed that on June 11, the total registered warrants for cast aluminum alloy stood at 37,931 mt, a decrease of 1,293 mt from the previous trading day. Specifically, by region: Shanghai (2,897 mt, unchanged), Guangdong (8,165 mt, down 483 mt), Jiangsu (7,711 mt, down 330 mt), Zhejiang (12,484 mt, down 270 mt), Chongqing (5,829 mt, down 60 mt), and Sichuan (845 mt, down 150 mt).

11 mins ago

23 mins ago

Expectations for US Fed Interest Rate Hikes Game Persists, China’s Accelerating Destocking Signals Short-Term Stabilization [SMM Aluminum Weekly Review]

[SMM Weekly Aluminum Price Review: Expectations for US Fed Rate Hikes Remain Contested, China Accelerates Destocking, Signaling Short-Term Stabilization]

23 mins ago

28 mins ago

LME Aluminium Prices Slide: Long-Short Game Behind Sharp Backwardation Contraction 【SMM Analysis】

\LME aluminium prices have retreated steadily from their late-May peak, falling from nearly $3,680 per metric ton to around $3,480 per metric ton. More notably, the LME aluminium Cash-3M spread narrowed sharply over just one week, dropping from a cash premium of $104.56 per metric ton on June 1 to $15.17 per metric ton on June 9, a loss of nearly $90 per metric ton. This marks the steepest contraction in the backwardation structure since the outbreak of the Middle East conflict.

28 mins ago