Aluminum Plate, Sheet and Strip Producers Face Difficulties in Destocking on Weak Demand

SHANGHAI, Nov. 3 (SMM) -- SMM sources report that aluminum plate, sheet and strip producers faced growing difficulties in destocking.

Finished product inventories at many aluminum plate, sheet and strip producers account for 50% of or even exceed their current monthly output, and few producers can keep inventories below 33% of monthly output.

Tight cash flows force most producers to accelerate the destocking, but declining exports and weakening domestic demand greatly affected sales of aluminum plate, sheet and strip. Many aluminum plate, sheet and strip producers are pessimistic toward the market outlook given sluggish construction and home appliance sectors and the destocking activity will continue for a long term.