Operating rates at aluminium processing enterprises continued to decline due to tighter logistics and CNY

SHANGHAI, Feb 5 (SMM)—Operating rates across major aluminium processors decreased 3.6 percentage points from a week ago to 71.8% last week. The decline was mainly due to less operations ahead of Chinese New Year and tightening of logistics. Construction extrusion, wire and cable, and secondary aluminium industries saw bigger decline. Construction extrusion, and wire and cable producers have gradually closed for CNY due to reduced orders, while secondary aluminium producers were forced to reduce orders and production due to tightening raw material supply. However, plate, strip, foil and industrial extrusion producers had relatively abundant orders and maintained stable production. The overall decline in operating rates at aluminium processing enterprises is expected to gradually expand after entering February as most of the small and medium-sized processing companies will close in early February, but the decline at major enterprises will remain relatively slow.