Off-season consumption deepens, secondary aluminum production starts to weaken again in May [SMM Analysis][SMM Analysis]

According to the SMM survey, the operating rate of the secondary aluminum industry in May 2025 declined by 0.8 percentage points MoM to 41.3%, and fell by 2.7% YoY. Although there was a slight recovery in the operating rate in the early period after the Labour Day holiday, under the triple pressure of high costs, insufficient orders, and continuous losses on production, the overall operating rate of the industry showed a downward trend, with frequent production reductions and suspensions. In particular, small and medium-sized enterprises were severely affected, with a significant decline in operating rates, and some enterprises were basically in a state of suspension. In contrast, large enterprises maintained relatively stable production due to their own advantages. Entering June, the traditional off-season continued. Given that the operating rate of enterprises had already declined significantly from April to May, the decline in June was expected to be limited.