Operating Rate of Primary Aluminum Alloy Producers Edges Up Amid Sluggish Recovery in Peak Season

Published: Sep 4, 2025 18:56

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In the first week of September, the operating rate of primary aluminum alloy producers edged up 0.2% MoM to 56.6%, indicating a still sluggish recovery pace in the early stage of the peak season. With the onset of the traditional consumption peak in September, the production resumption process in primary processing sectors such as aluminum billets continued to advance, sustaining the diversion effect on liquid aluminum. Although some enterprises maintained capacity release by optimizing product structures and expanding orders in niche segments, the overall operating rate saw limited improvement.

Feedback from enterprises revealed that top-tier enterprises maintained basically flat primary aluminum consumption WoW, with large-scale enterprises sustaining relatively high capacity utilization rates due to stable orders and resource integration advantages. However, small and medium-sized enterprises remained constrained by weak order books, with most reporting no significant improvement in downstream purchase willingness. The actual recovery in operating rates fell short of expectations, with demand-side constraints remaining the core challenge for the industry.

Although tariff risk disruptions eased somewhat, and some downstream enterprises initiated tentative restocking, providing temporary market support, the recovery in end-use consumption still fell short of expectations. The time-lag effect of policy support translating into end-use demand persisted. SMM maintained its pr

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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