SHANGHAI, Mar. 19 (SMM) – SMM recently conducted surveys on domestic aluminum extrusion producers. Based on orders received by surveyed producers, SMM expects operating rates at these producers to be 60% in March.
Construction of infrastructure projects has progressively restarted in south ad north China as it’s getting warmer with the arrival of March, so construction aluminum extrusion producers saw an increase in orders. China introduced five new measures in early 2013 to cool exorbitant housing prices, but the building of new and affordable houses and renovation of old houses will continue to boost demand for construction aluminum extrusion. Operating rates at industrial aluminum extrusion producers, on the other hand, were unstable, as demand from rail transportation and power sectors depends on investment by the central government.
Large aluminum extrusion producers, with sufficient capital, have managed to secure more orders from developers and decoration companies by allowing payment extension. SMEs, on the other hand, received only limited orders, contributing to low operating rates.