Operating Rates of Aluminium Plate/Sheet And Strip Producers Fell in July amid Poor Orders

SHANGHAI, Aug 12 (SMM) - The average operating rate of Chinese aluminium plate/sheet and strip producers stood at 74.99% in July, down 1.27 percentage points month-on-month, but up 0.82 percentage point year-on-year.

Under the influence of sluggish end consumption, the new orders of aluminium plate/sheet and strip producers remained insufficient and fell short of expectations last month. Many producers were forced to reduce their production or lower their conversion margins. Downstream customers became more willing to pick up their cargoes following the rebound of aluminium prices in late July, allowing the inventory of finished products held by aluminium plate/sheet and strip producers to decline. Most producers are pessimistic that the consumption will hardly recover in August as it is still the traditional off-season. This, coupled with the power rationing, could potentially send the operating rates lower this month.