Low season keeps secondary aluminium operating rates at lows in Aug

Published: Sep 12, 2018 16:15

Save

The summer heat and environmental suspensions lowered rates by 2.84 percentage points on the year

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.

Operating rates Aluminium Aluminium scrap Secondary aluminium

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

18 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

18 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

18 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

18 hours ago