China Remelted Rod Output Drops 20% in July Amid Supply Constraints; Anticipated Production Resumption Ahead of Peak Season

Published: Aug 23, 2024 21:04

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On the supply side of remelted rods, constrained by factors such as policy changes, high costs of using scrap, limited scrap aluminum supply, and safety inspections in some regions of eastern China, the July output of SMM's China remelted rod sample decreased by 35,000 tonnes from the previous month to 139,600 tonnes, a decrease of nearly 20%; the operating rate fell by 8 percentage points from the previous month to 32%. Overall, as we enter August, with the traditional peak season of "Golden September and Silver October" approaching, downstream demand has slightly improved, and it is expected that there will be room for resumption of production in rod plants in northwest regions such as Xinjiang and Qinghai. Subsequently, the operating rate of domestic aluminum billet will rebound. SMM predicts that...

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