53% Aluminum Plate, Sheet and Strip Producers Expect Weaker Orders in December

SHANGHAI, Dec. 15 (SMM) -- According to a recent SMM survey of 34 domestic aluminum plate, sheet and strip producers, 53% of producers expect orders for December to decline, while the rest of producers believe orders will be unchanged or rise.

Air-conditioner manufacturers and other downstream enterprises will generally build raw material inventories from November 2011 to March-April 2012 based on past experiences. Meanwhile, automobile manufacturers will also begin to purchase raw materials at year’s end after consuming existing aluminum plate, sheet and strip inventories in 2H 2011. In general, consumption of aluminum plate, sheet and strip is stable in 4Q.

However, producers said new orders in 2011 reported no growth amid deteriorating domestic and international macro economic conditions, but orders from regular customers were falling. Moreover, tight credit at year’s end also negatively affected operating rates at producers.

SMM sources report that only 18% of producers believe orders for December will increase, and this part of orders is closely related to the fact that producers are close to the consumer market, produce high-tech products and have strong sales teams.