The Pandemic Sent the Operating Rates of Aluminum Processing Enterprises to a Two-Month Low This Week

SHANGHAI, Apr 22 (SMM) - The average operating rate of major aluminium processing enterprises dropped 3.3 percentage points from a week ago to 64.5% this week. In terms of sectors, except for a slight increase in aluminium wire & cable sector and stable operating rates in aluminium plate/sheet and strip sector, the operating rates of all other sectors have declined to varying degrees. The operating rates of primary alloy and aluminium extrusion sectors fell the most. The main reason is that the pandemic situation in east China, the main consumption area, has not improved, and some downstream enterprises have been forced to reduce production. The orders of enterprises have decreased while the inventory of finished products has increased. The aluminium foil and secondary alloy sectors also saw a slight decline in their operating rates this week. The pandemic continued to suppress transportation efficiency, making it difficult for enterprises to obtain raw materials and ship finished products. Some were forced to reduce production due to insufficient orders and shortage of raw materials. The current pandemic is still putting pressure on downstream production. Market needs to continue to pay attention to the impact of the pandemic on the transportation of enterprises in various places. If the pandemic eases, downstream consumption is expected to recover quickly, and the production of enterprises will rebound significantly by then.