Home / Metal News / Operating rates at aluminium extrusion producers rose slightly in November

Operating rates at aluminium extrusion producers rose slightly in November

iconDec 15, 2020 15:27
Source:SMM
Operating rates at aluminium extrusion producers rose slightly from October at 63.10% in November. Operating rates at industrial extrusion producers rose 2.98 percentage points from October to 69.68%, and fell slightly to 61.84% at construction extrusion producers.

SHANGHAI, Dec 15 (SMM)—Operating rates at aluminium extrusion producers rose slightly from October at 63.10% in November. Operating rates at industrial extrusion producers rose 2.98 percentage points from October to 69.68%, and fell slightly to 61.84% at construction extrusion producers.

Large producers increased operating rates slightly due to moderate orders, while operating rates at smaller producers weakened, depressed by cash flows and lower orders. Operating rates and demand in north China were slightly weaker than those in south China. Producers in Henan and Shandong reduced production due to environmental restrictions. Most aluminium extrusion producers in Henan cut production at 50% and some producers even halted. As the demand and orders for industrial extrusion rose sharply in H2, consumption of automobiles and PV sectors increased significantly. Electronic demand and rail transport demand also performed well. Receivable accounts weighed on producers as long as the conflict between capital and orders continued till the end of the year. The growth of construction extrusion demand mainly in real estate and infrastructure sectors was limited in Q4. However, the consumption demand in aluminium sector is still likely to rise.

China exported 77,300 mt of aluminium extrusion in October, down 3.31% year on year and 9.74% month on month, customs data showed. From January to October, exported aluminium extrusion totalled 714,600 mt, down 17.48% year on year amid weaker overseas demand.

Raw material inventory/output ratio rose 0.18% to 16.51% compared with October. Spot aluminium rose sharply with an increase of 1,940 yuan/mt in November. Most downstream users purchased as required, while some were cautious about stockpiling. The finished product inventory/output ratio dipped to 27.5% as most producers kept inventories stable, lifted cash flows and lowered receivable accounts according to their own operation.

Most large producers have expanded capacity, while smaller producers lowered orders. Stronger fluctuations of aluminium prices depressed the demand in end-user. Better performance of demand in industrial extrusion segment supported the operating rates in H2. Aluminium extrusion consumption in Q4 is expected to rise. Operating rates at aluminium extrusion producers are likely to rise to 64% in December.

For more detailed market information on the aluminium markets, please subscribe to China Aluminium Monthly.

Operating rates
Aluminium extrusion

For queries, please contact William Gu at williamgu@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news