[SMM analysis] the overall operating rate of aluminum profiles in September is 60.69%. It is expected that the operating rate will be basically the same in October.

SMM has recently conducted communication and interviews with dozens of domestic aluminum profile enterprises. Through the statistics and calculation of the data, it is concluded that the operating rate of aluminum profile enterprises in September is around 60.69%, up 1.51% from August. Under the influence of various factors, the starting rate in August is expected to be 61%, and the starting rate this month is weaker than expected. In terms of enterprise size, the operating rate of large enterprises is 64.02%, that of medium-sized enterprises is 50.43%, and that of small enterprises is 40.03%. According to the types of enterprises, the operating rate of industrial profile enterprises was 56.83%, up 3.39% from the previous month, and the average operating rate of construction profile enterprises was 61.42%, 1.34% higher than the previous month.

Source: SMM

In the monthly report products of SMM last month, SMM has suggested that the northern profiles in September may be affected by the military parade and environmental protection. According to SMM, before the 20th of this month, the entire aluminum profile market performance has obviously warmed up compared with August. Anhui, Shandong, Fujian and other aluminum profile factories reported that their production and orders were significantly better than in August, but with the advance of the military parade itinerary, Provinces and cities around Beijing, such as Hebei, Shandong, Shanxi, Tianjin and Henan, began to issue frequent weather warnings for heavy pollution, and cities began to put environmental control on the agenda, requiring industries prone to pollution to implement production restrictions. Some aluminum enterprises in Hebei and Shandong reported to SMM, and the local government asked themselves to stop production from September 25 to October 4, and most enterprises in the northern region said that The control of this year's parade is stricter than in previous years. As far as SMM understands, some enterprises in the north are affected by this, and even have orders but can not fully produce the situation, so it is difficult to greatly improve the operating rate of the factory area. Of course, this shutdown storm mainly affects enterprises in the northern region, the southern region, such as Hunan, Guangdong, Fujian, Anhui and other aluminum profile factories most of the normal production, the output has been improved to a certain extent. In terms of product categories, the overall construction profile is steadily improving. In terms of industrial materials, the market demand for photovoltaic, rail transit profiles and containers is still good. In addition, the market for automobile profiles, which performed weakly in the early stage, has also picked up this month. As a result, the overall operating rate of industrial materials has increased by 3.01% compared with August.

Raw material inventory, due to the impact of the National Day holiday, the overall raw material inventory rose to a certain extent, the raw material inventory rate in September was around 15.23%, up 1.74% from August, and the finished product inventory rate was around 33.59% in September.

In October, the market situation of the aluminum profile industry is still stable, and the overall order situation of building materials and industrial materials has not declined significantly, but the same problem, some enterprises stopped production for a few days because of environmental protection at the beginning of October, and some enterprise workshops will be closed for 0-4 days during the National Day holiday, so it is difficult to significantly improve the overall operating rate next week, basically flat compared with September, and the starting rate in October is estimated to be around 61%.

(SMM Xueman)