Low season keeps secondary aluminium operating rates at lows in Aug

SHANGHAI, Sep 12 (SMM) – Chinese secondary aluminium producers continued to operate at low levels in August as high temperatures in the summer kept the market in a low season and as some capacities suspended on environmental probes, SMM research found.

Operating rates across secondary aluminium producers averaged 53.12% last month, down 0.22 percentage point month on month and 2.84 percentage points year on year.

Operating rates across producers in Chongqing dropped sharply in August with production at some large producers down nearly 40%. Extreme heat in the summer across the city drove downstream consumers to give their workers much time off. Downstream demand has mostly recovered as these 'summer breaks' end, and this drove up operating rates across secondary aluminium producers in Chongqing in September.

SMM research found that secondary aluminium producers received more orders at the start of September, an indication of the looming peak season. The average operating rate is expected to rebound to 57% in September.