SHANGHAI, Jan 19 (SMM)—Operating rates at secondary aluminium producers rose slightly by 0.23 percentage point to 62.65% in November. This was down 3.35 percentage points from a year earlier. Strong orders from downstream auto makers encouraged secondary aluminium producers to maintain production. Some producers trimmed output in the first half of December due to shortage of raw materials, but the short supply was eased in H2 as aluminium scrap prices fell along with aluminium prices.
However, the secondary aluminium industry is still facing great pressure at present. Some producers are still likely to cut output due to shortage of raw materials. Demand is likely to weaken as the traditional high season for auto-mobiles ends and as transportation is affected by the COVID-19 outbreak and the cold weather. Operating rates at domestic secondary aluminium alloy producers are expected to slide in January.
