Dragged Down by the Chinese New Year Holiday, the Operating Rate of Secondary Aluminum Producers Dropped Significantly in January [SMM Analysis]

SMM News on February 11:

Operating Rates of Secondary Aluminum Alloy Enterprises by Region in January 2025 Survey Data: Operating Rates of Secondary Aluminum Alloy Enterprises by Scale in January 2025

Survey Data:

According to SMM survey statistics, the operating rate of the secondary aluminum industry in January 2025 decreased slightly by 8.2 percentage points MoM to 34.8%, marking a decline for two consecutive months.

Due to the Chinese New Year holiday, 14% of enterprises (mainly small and medium-sized enterprises or those in north China) began their holiday from January 10-15, 70% of enterprises suspended operations from January 20-26, and 14% of enterprises (primarily aluminum liquid direct supply or large enterprises) started their holiday only after January 27 (the 28th day of the twelfth lunar month). The number of days of furnace shutdown varied among enterprises, with approximately 25% of enterprises taking less than 10 days off, 55% taking 10-20 days off, and 20% taking more than 20 days off. Overall, the holiday arrangements of secondary aluminum plants this year showed little difference compared to previous years. The Chinese New Year holiday significantly reduced the operating rate of the secondary aluminum industry in January. In addition to the holiday factor, environmental protection inspections and material shortages also constrained the operating levels of enterprises.

As for post-holiday resumption, large secondary aluminum plants or aluminum liquid direct supply enterprises resumed production first between January 31 and February 5, while other enterprises gradually resumed production from February 6-9. However, as the upstream and downstream sectors have not fully recovered, it is expected that normal production levels will only gradually resume after the Lantern Festival. The operating rate of the industry in February is expected to rebound significantly but will remain below the normal pre-holiday operating levels.

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Data Description: This survey covered a total capacity of 12.7 million mt.

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