Secondary Aluminum Sector Operating Rate Rebounds Briefly Amid Supply-Demand Pressures

Published: May 8, 2025 19:22

Save

This week, the operating rate of leading enterprises in the secondary aluminum sector rebounded by 2.5 percentage points MoM to 55.0%, primarily driven by the resumption of production at secondary aluminum plants after the holiday. However, the industry's warming trend failed to persist, as the effects of the traditional consumption off-season emerged after Labour Day holiday, coupled with the impact of tariff policies, leading to a decrease in both domestic and overseas orders. Trading volume in the spot market continued to hover at low levels. Additionally, the continuous decline in aluminum prices exacerbated the wait-and-see sentiment among downstream enterprises. Currently, the industry is facing bidirectional pressures: on the supply side, affected by the contraction in the circulation of raw materials, procurement costs for aluminum scrap remain high; on the demand side, the widening gap in terminal orders has formed a constraint. As a result, some secondary aluminum plants have reduced their operating levels, and it is expected that the industry's operating rate will continue to decline in May.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

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

Related News

15 hours ago

2026 Arrangements for Secondary Aluminum Alloy Enterprises During Chinese New Year Break [SMM Analysis]

[SMM Analysis]2026 Arrangements for Secondary Aluminum Alloy Enterprises During Chinese New Year Break [SMM Analysis]

15 hours ago

16 hours ago

Costs Drag Down Supply-Demand Pressure, Aluminum Auxiliary Material Prices Under Pressure and Weaken [SMM Analysis]

16 hours ago

Ningbo Xinlin Mold's Anhui Pilot Center for Mg-Al Alloy & Semi-Solid Molding Officially Operational

[SMM News] It was reported that the magnesium and aluminum alloy and semi-solid mold R&D pilot center of the Anhui Luan Die-casting Mold Plant No. 3 of Ningbo Xinlin Mold Technology Co., Ltd. was officially put into operation recently. The plant had commenced production in May 2024, and the launch of the pilot center marked a key breakthrough for Xinlin Mold in capacity layout, technological R&D, and market expansion, which will further strengthen its competitiveness in the high-end die-casting mold sector.

16 hours ago