[SMM Research: The Operating Rate of Leading Secondary Aluminum Alloy Manufacturers Continued to Decline This Week] The operating rate of leading secondary aluminum manufacturers declined by 0.9 percentage points from the previous week to 55.4% this week. After July, the operating rate of secondary aluminum manufacturers generally declined, especially for small and medium-sized factories, where shutdowns and suspensions were quite common. Enterprises often suspended production for half a month to take the opportunity to conduct equipment maintenance and mainly digest inventory. The main reasons for enterprises to reduce production are: first, the lack of orders during the slack season; second, the excessively high cost of purchasing scrap aluminum. Currently, the supply of scrap aluminum in the market is tight, and the inventories of recyclers and cargo yards are low. The price is resilient, and the continuous decline in the market has led to reluctance to sell among traders. Secondary aluminum plants have difficulties in purchasing scrap aluminum, and production costs have increased sharply. Third, concerns about the impact of the "Fair Competition Review Ordinance" implemented on August 1, such as tax refunds in different regions. Under the constraints of multiple factors, the operating rate of the secondary aluminum industry is expected to continue to decline in the short term.
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