Aluminum Extrusion Operating Rates Failed To Extend March’s Robust Recovery

SHANGHAI, May 16 (SMM) - The average operating rate of aluminum extruders stood at 49.14% in April, up 0.59 percentage point month on month and 6.49 percentage points year on year, SMM survey showed. The average operating rates of large, medium-sized and small enterprises were 47.61%, 55.61%, and 41.54% respectively. The average operating rate in the construction aluminum extrusion sector dropped 0.13 percentage point MoM, but rose 3.51 percentage points YoY to 46.61%. The average operating rate in the industrial aluminum extrusion sector climbed 0.55 percentage point MoM and 5.8 percentage points YoY to 55.1%.

After backlog orders were delivered, operating rates failed to extend the robust recovery seen in March. There were very few new orders for construction aluminium extrusion in the second half of April, especially in south China, where large extruders cut their output. Extruders in Shandong maintained high operating rates on the back of relatively abundant orders from infrastructure sector. The year-on-year growth in the operating rates of construction aluminium extruders was due to lower base in the same period last year caused by severe pandemic. Demand from the automobile and photovoltaic sectors remained strong. However, market competition intensified amid rapidly expanding capacity, forcing extruders to lower their conversion margins.