SMM Survey: Secondary Aluminum Alloy Enterprises' Operating Rate Declines Further Amid Raw Material Shortage and Environmental Checks

[SMM Survey: Operating Rate of Leading Secondary Aluminum Alloy Enterprises Continued to Decline This Week]

The operating rate of leading secondary aluminum enterprises fell by 0.4 percentage points WoW to 54.4% this week. Insufficient raw materials and regional environmental protection inspections remain the main factors affecting the operating rate of the secondary aluminum industry. Under tight supply, the price difference between primary metal and scrap continued to narrow this week, and many secondary aluminum manufacturers are facing the risk of raw material shortages. Additionally, enterprises in Chongqing and other regions that reduced production due to environmental factors have not yet resumed normal operations. Furthermore, some northern enterprises have started their holidays early due to cold weather, while most other manufacturers will enter the Chinese New Year holiday after the 22nd. Overall, in the short term, the operating rate of the secondary aluminum industry is expected to decline, mainly due to raw material and environmental factors.