Aluminium Rod Processing Fees Likely to Grow

SHANGHAI, Apr 13 (SMM) - Aluminium rod manufacturers in some provinces reduced production due to insufficient aluminium liquid, resulting in an aluminium rod shortage. Goods pick-up by the local downstream companies grew, hence aluminium rod manufacturers intended to raise the processing fees. Production resumption of some enterprises in Henan that suspended production earlier is still in progress. The output loss of the aluminium rod has not yet fully recovered. Demand: April is still the peak season of wire and cable. Recently, the operating rates of aluminium wire and cable companies have continued to grow. New orders placed by downstream sectors are expected to increase, and terminal companies also ramp up the pick-up of cargoes. Aluminium rod companies will be more willing to produce amid the decreased in-plant aluminium rod stocks. In general, the recovery of downstream demand is still better than expected, which is bullish for aluminium rod processing fees. In the second quarter of 2023, SMM presumes that the aluminium rod processing fees will remain stable with occasional ups.