SMM Analysis: Domestic Primary Aluminum Billet Production Plummets Over 100,000 mt in January 2025 Due to Chinese New Year and Weak Demand

Published: Feb 16, 2025 23:12

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[SMM Analysis: Impact of Chinese New Year and Weak Demand - How Was Domestic Primary Aluminum Billet Production at the Start of the Year?] Comprehensive Production Cuts! Affected by the combined impact of multiple factors during the Chinese New Year holiday, domestic primary aluminum billet production in January 2025 plummeted by over 100,000 mt, with the decline exceeding expectations. January and February are traditionally the off-season for the primary aluminum billet industry. During the Chinese New Year holiday, factors such as employees returning home, downstream shutdowns, and annual equipment maintenance typically lead to widespread production cuts or partial shutdowns among aluminum billet enterprises, which is within expectations. However, due to strong aluminum prices during the month and the influence of multiple factors, downstream holidays started slightly earlier this year, extending the vacuum period on the demand side for aluminum billets. To avoid excessive in-plant inventory causing financial and sales pressure, aluminum billet enterprises showed a slightly lower willingness to produce during the Chinese New Year holiday. The daily average production of domestic primary aluminum billets decreased by 4,000 mt MoM to around 43,000 mt/day...

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