Secondary Aluminum Industry PMI Drops to 38.0% in July Amid Seasonal Slowdown

Published: Jul 31, 2025 18:21

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In July, the PMI of the secondary aluminum industry fell MoM to 38.0%, remaining below the 50 mark. On the production side, July is traditionally the off-season for the industry, with corporate orders gradually weakening. Coupled with the constraints of tight raw material supply and production losses, many enterprises were forced to reduce production, dragging down the industry's operating rate to continue its decline. However, the overall decline in the operating rate was limited. Firstly, the good performance of motorcycle consumption supported orders for some enterprises. Secondly, after the listing of cast aluminum alloy futures, futures-to-cash traders purchased a large amount of delivery brand ADC12, offsetting the reduction in downstream orders for some enterprises and, to a certain extent, smoothing out the fluctuations between peak and off-seasons. On the inventory side, enterprises' finished product inventories were rapidly depleted due to the decline in operating rates and the delivery of futures-to-cash orders, while social inventories accelerated their accumulation. Limited by the insufficient supply and high prices of raw materials, enterprises faced difficulties in raw material procurement, and raw material inventories also declined. Looking ahead to August, it is expected that end-use consumption of secondary aluminum will not significantly improve, and the industry's PMI will remain below the 50 mark.

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.

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