SHANGHAI, Sep 17 (SMM) — Operating rates at aluminium plate and strip producers stood at 68.6% in August, up 0.46 percentage point month on month, but down 1.76 percentage points year on year, SMM survey showed.
Orders at producers could sustain production for 20 days on average, up 3 days from July. Production schedules at large producers were 21-45 days, but were just 14 days at smaller producers. New orders for can stock and can tab weakened following the summer high season, while orders for construction and decorative plate and strip were largely stable. Demand for PS printing plates and 3C electronics materials was weak, while demand for automotive sheet recovered slightly. Exports are recovering gradually, but still much weaker than last year. The shift to the domestic market intensified competition and prompted some producers to lower offers to secure more orders. Producers kept low raw material stocks amid rising aluminium prices. Finished product inventories declined slowly, but remained higher than last year.
Operating rates are expected to rise nearly 2 percentage points month on month in September as producers expect new orders to grow during the traditional peak season and backlog orders at large producers could sustain production throughout this month.
