【Weekly Operating Rate of Aluminum Profiles】According to SMM research data, the operating rate of leading domestic aluminum profile companies fell 1.50 percentage points to 58.50% this week (May 20-24) compared with the previous week. This was mainly due to the downstream fear of high prices after aluminum prices broke through 21,000 yuan, coupled with the end of the month approaching, the initial order inventory decreased, and some enterprises' operating rates decreased. In terms of sub-sectors, there was no significant market fluctuation in building profiles this week. According to SMM research, the orders in hand of domestic building material head enterprises since the beginning of 2024 have been better than expected, but still show a downward trend compared with previous years. Some enterprises believe that trillions of treasury bonds and ultra-long-term treasury bonds may have a positive effect on enterprise repayment. In the industrial profile sector, leading photovoltaic profile enterprises have sufficient orders in hand, but the processing fees are too low, and the profit margin of enterprises continues to compress. Overall, the inhibitory effect of high aluminum prices on the downstream is still apparent.
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