Industrial Profiles Operating Rates Stable at 50%, Profit Margins Squeezed

Telah Terbit: Jun 22, 2025 23:55

Simpan

【Operating Rates of Industrial Profiles】 This week, the overall operating rate for industrial profiles remained flat at around 50% compared to last week. Some medium-to-large industrial profile enterprises in Shandong and Southwest China reported recently receiving some large orders (mainly for rail transit and automobiles), with production primarily focused on billets, providing support for operating rates. However, orders for deep processing were relatively low. Enterprises noted that low deep-processing operating rates are very common in Shandong, where it is standard practice to ship billets out from factories to deep-processing plants near OEM plants for secondary processing. Some enterprises in East China reported that OEM plants are now demanding profile processors make further concessions of 3-5% on processing fees to secure their position as suppliers, further compressing profits for related enterprises. Some small enterprises in Henan reported that current processing fees are only bearable for integrated production enterprises, and small enterprises still face sluggish order intake, with operating rates continuing to decline.

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