Secondary Aluminum Firms' Operating Rates Drop Amid Weak Demand and Rising Costs

Published: Apr 16, 2026 16:57

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[SMM Aluminum News Flash] This week, the operating rate of leading secondary aluminum enterprises pulled back slightly WoW, mainly dragged down by weakening demand. Currently, downstream enterprises generally maintain just-needed restocking with low willingness to accept high-priced supplies, and the overall market trading atmosphere remains subdued. On the cost side, primary aluminum prices held up well this week, pushing up production costs for enterprises. Some producers raised their quotes accordingly; however, constrained by lackluster demand follow-through, the price increase of finished products was notably weaker than that on the aluminum scrap side, and industry profit margins remained under pressure and continued to narrow. In the short term, operating rates still face downward p

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