SHANGHAI, Oct. 9 (SMM) – Aluminum rods sales improved mildly as increased operating rates at domestic aluminum extrusion producers has promoted demand for raw materials.
Aluminum rod processing fees are virtually unchanged from previously due to high costs despite ample supply. Processing fees to the factory were RMB 500-550/mt in Zhejiang and RMB 550-600/mt in Shanghai.
Aluminum rod producers and traders note that aluminum rod consumption improved with increased orders from downstream demand recovery. According to SMM’s survey, operating rates at aluminum extrusion producers were 63% in September, up 7% MoM. Operating rates at producers of aluminum extrusion for industrial and construction use were 55% and 64%, respectively, up 6% and 7% MoM.
Besides, aluminum extrusion producers, which buy aluminum ingot and then process into rods, chose to purchase aluminum rods due to low prices.