[Al] SMM Survey - Operating Rates at Aluminum Profile Producers

SHANGHAI, Aug. 26 (SMM) -- A recent CBI survey of 28 domestic aluminum profile producers (total capacity: 2.006 million mt/yr) revealed the following insights:

    1)  Production

    According to the survey, operating rates at the 28 aluminum profile producers were down slightly compared to June levels. Downstream manufacturers say although downstream consumption during July improved compared to June, higher aluminum prices in July was dampening purchasing interest in certain sectors. The survey reveals only smaller producers reported improvements in operating rates, while rates at both large and medium producers experienced slight declines.  

    2) Forecast for August Orders

    In the context of improving economic conditions and economic stimulus plans from the Central Government, downstream producers are reporting significant changes in forecasts for August orders. According to the survey, only 10% of producers believe August orders will drop.  Another  50% of producers say August orders will be flat at July levels, while the remaining 40% predict August orders will increase due to improved downstream consumption, but were uncertain about  September or 4Q. Some producers believe the implementation of direct-investment and economic stimulus policies from the government helped improve consumption. However, they also believe the sustainability and authenticity of any improved demand was uncertain, and that any adjustments in the future of credit policies by the Central Bank will have a direct impact on downstream consumption.

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