Poor demand erodes Sep's operating rates at secondary aluminium producers 

SHANGHAI, Oct 16 (SMM) – Poor consumption in the downstream automobile sector eroded operating rates across Chinese secondary aluminium plants year on year in September, even as the traditional high season set in. 

Operating rates across secondary aluminium producers averaged 58.25% last month, down 5.05 percentage points from a year ago but up 5.13 percentage points from August. 

Working days picked up from August across downstream die-casting plants as they ended summer breaks in September, and this accounted for the month-on-month increase in operating rates. However, actual demand failed to rebound on the year, with few downstream plants restocking before the National Day holiday and the Mid-Autumn festival. 

SMM expects the operating rate to extend its decline in October to around 58%, as post-holiday purchases remained thin across downstream sectors. During the National Day holiday, die-casting plants took longer breaks than last year. Some secondary aluminium producers plan to conduct maintenance in October, and this will also weigh on the operating rate.