Aluminum wire and cable weekly operating rates continued to pick up, but new orders were insufficient [SMM Analysis]

This week, the operating rate of leading aluminum wire and cable companies gradually recovered, up 2 percentage points MoM to 60%. Due to the delivery pressure of UHV orders, the overall operating rate of leading companies remained stable. Production of other leading companies resumed after the holiday. However, the current new orders are insufficient, and most of the production are based on backlog orders. Except for the UHV orders currently in hand by major manufacturers, the demand for orders from the State Grid has not yet improved significantly, and photovoltaic and wind power projects stalled. We still need to wait for positive signals for the recovery of downstream production. In previous years, March and April were the traditional peak seasons. However, whether the aluminum wire and cable industry can successfully enter the peak season requires close attention to the consumption demand of state grid aluminum wires and cables and the impact of aluminum price trends on the operating rates.

In terms of aluminum rods, during the week, leading companies raised their processing fees firm. However, due to poor new downstream orders amid weak demand, coupled with massive inventory, the actual transaction prices were lower than the quoted price. The average ex-factory price for 1A60 aluminum rods in Shandong was 450 yuan/ton on Friday, up 50 yuan/ton WoW; the average ex-factory price for 1A60 aluminum rod processing fee in Henan was 400 yuan/ton, down 50 yuan/ton WoW; Inner Mongolia was reported at 250 yuan/ton, up 50 yuan/ton; the average arrival price of 1A60 aluminum rod processing fee in south China was recorded at 500 yuan/ton, which was flat.