SHANGHAI, May 13 (SMM) - The average operating rate of Chinese aluminium foil producers stood at 76.64% in April, down 2.17 percentage points month on month and 11.65 percentage points year on year. In April, the severe pandemic in east China continued to hinder the transportation, leaving some local aluminium foil enterprises short of raw materials and forcing them to lower their operating rates sharply. With a large number of people under quarantine to contain the spread of the pandemic, the demand for aluminium foil used in food packaging increased considerably. In contrast, orders for air-conditioning foil and brazing foil fell short of expectations due to transportation obstacles.
At present, the market is relatively optimistic about orders in May, believing that orders will increase after the pandemic situation improves. However, some small aluminium foil companies reduced their output in early May in response to volatile aluminium prices, limiting the increase in the overall operating rates in the industry.
