SHANGHAI, Mar 7 (SMM) – Some aluminium extrusion, plate, and strip processors told SMM that downstream orders usually surge in March to May each year, when they would step up stockpiling raw materials. SMM expects this will occur by the end of March this year.
After CNY, downstream consumers of primary aluminium withheld from purchasing as they expected rising inventories and weaker costs to lower aluminium prices in the near term. This accounted for the slow recovery of downstream demand post-CNY, SMM believes.
Poor weather in the north and the annual political meeting in Beijing postponed the resumption of local construction work as of Thursday March 7.
Post-holiday labour shortage in downstream processing industry, such as aluminium extrusion sector, also accounted for tepid demand, an SMM survey found.