[SMM Survey: Operating Rates of Leading Recycled Aluminum Alloy Enterprises Declined This Week] The operating rates of leading recycled aluminum enterprises fell by 2 percentage points to 53.4% this week compared with the previous week. There are still many factors disrupting the production of recycled aluminum plants during the week. First, policy-related issues. The Regulation on the Review of Fair Competition came into effect on August 1st. For recycled aluminum plants that enjoy preferential tax policies, concerns about rising tax burdens have led enterprises to reduce purchases or lower operating rates to mitigate risks. Second, profit inversions. Higher costs have intensified production losses for enterprises. Third, downstream enterprises in southern and southwestern China have successively entered high-temperature vacations, resulting in a slight decline in orders for die-casting factories and recycled aluminum plants, and corresponding reductions in production. Fourth, some recycled aluminum plants in Guangdong Province have partially reduced their operating rates due to environmental inspections. In the short term, constrained by multiple factors, the operating rates of the recycled aluminum industry are expected to continue to be under pressure.
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