Secondary Aluminum Industry Leaders' Operating Rate Drops to 53.4% Amid Cost and Demand Pressures

Published: Jun 11, 2026 15:39

Save

[SMM Aluminum Flash] The operating rate of secondary aluminum industry leaders fell by 0.5 percentage point WoW to 53.4% this week, pressured mainly by both cost and demand factors. Cost side, tightening invoice supervision across multiple regions stuck, leading to difficulties in compliant procurement and high tax burdens. Enterprise profits came under pressure and even turned negative, prompting some producers to cut or suspend production. Demand side, the downstream continued its weak off-season pattern, with demand from end-users such as OEMs pulling back. Market transactions were dominated by rigid restocking. If the invoice supply issue continues to worsen, along with a further deepening of the off-season, the industry operating rate will still face downward pressure, and the supply-

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 for 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

2 hours ago

[SMM Analysis]Aluminum Billet Inventory Falls to 130,000 mt, Warehouse Withdrawals Rebound, Processing Fees Soften

According to SMM statistics, on July 2, aluminum billet inventory in China's mainstream consumption areas dropped to 130,000 mt, down 4,000 mt from last Monday and 10,000 mt from last Thursday, with the destocking pace accelerating markedly. Compared with the same period, it was 23,500 mt lower than in 2025 and 9,700 mt lower than in 2024, pushing total inventory to the lowest level for the same period in the past three years. In terms of warehouse withdrawals,

2 hours ago

SHFE Cast Aluminum Alloy Warrants Drop to 25,485 mt on July 3, Down 1,077 mt from Previous Day

[SMM Flash] SHFE data showed that on July 3, the total registered warrants for cast aluminum alloy stood at 25,485 mt, down 1,077 mt from the previous trading day. By region, the breakdown was: Shanghai (2,603 mt, down 299 mt), Guangdong (4,079 mt, down 360 mt), Jiangsu (5,279 mt, down 148 mt), Zhejiang (8,200 mt, down 211 mt), Chongqing (4,539 mt, down 59 mt), and Sichuan (785 mt, down 1,507 mt).

2 hours ago

4 hours ago

Domestic Ports See 280,000 MT Drop in Bauxite Inventory, SMM Reports

【SMM Port Inventory of Imported Bauxite】According to SMM's statistics on July 3, the total bauxite inventory at ten domestic ports decreased by 280,000 mt from the previous week.

4 hours ago