SHANGHAI, Jun 13 (SMM) – Operating rates across Chinese secondary aluminium producers dropped 4.6 percentage points from a month ago, and 4.2 percentage points from a year ago to stand at 53.73% in May, showed an SMM survey on Thursday June 13.
Destocking of auto inventories ahead of the new emission standards kept demand for secondary aluminium weak.
Sluggish demand from end-users grew the pressure of inventories of finished goods at secondary aluminium producers, driving them to curtail production.
Inflows of seaborne ADC12 weighed on the domestic low-end market, and this shrank profit margins and resulted in production cuts.
Greater efforts to lower stocks of vehicles under old emission standards is likely to depress operating rates across secondary aluminium producers to some 50% in June.
