Secondary aluminium operating rates surged to 59.6% in September

SHANGHAI, Oct 23 (SMM)—Operating rates at secondary aluminium makers gained 6.6 percentage points on the month to surge to 59.6% in September, down 1.1 percentage points year on year. Imports of scrap aluminium decreased due to less quotas, and output of domestic scrap aluminium also shrank amid the COVID-19 pandemic. Meanwhile, arrivals of imported aluminium alloy ingots declined in September as the import arbitrage window was closed in early August. Demand improved significantly in September, in line with market expectations, as the automobile market has entered a high season.

Operating rates are expected to fall slightly to 58% in October due to the National Day holidays, but remain at high level.