Price War Escalates among Chinese Aluminum Plate, Sheet, Strip and Foil Producers

SHANGHAI, Mar. 20 (SMM) – SMM just finished its monthly survey on domestic aluminum plate, sheet, strip and foil producers. Based on the survey, SMM expects operating rates at the surveyed producers to be 56% in March.

In order to compete for market shares, many producers held offers for decorating and air-conditioner foil near costs after the Chinese New Year. Unlike in the past, price war this year began earlier and price decline is sharper, with offers down for both retail sales and long-term contracts. A supply overhang of aluminum semis in domestic markets is the major reason behind the intensifying price competition. The commissioning of new capacity has forced producers to cut prices to win customers.   

Large aluminum plate, sheet, strip and foil producers have secured far more orders than small and medium ones since the former have more working capital.