SHANGHAI, Feb 14 (SMM) - The average operating rate of domestic aluminium foil producers stood at 72.7% in January, down 9.66 percentage points YoY and 0.87 percentage point MoM.
The domestic aluminium foil market underperformed in January under the influence of off-season and CNY holiday, while the overseas market showed no signs of recovery. Many aluminium foil companies lowered their operating rates in response to falling orders, but large ones basically maintained high operating rates during the CNY holiday.
Entering February, the finished product inventories of aluminium foil enterprises gradually returned to normal levels with the recovery of logistics service. The demand boom in the second half of 2021 and first half of 2022 is unlikely to sustain into 2023 under the background of global economic recession. That being said, the operating rates of domestic aluminium foil producers are poised to recover on a MoM basis in February, driven by abating impact from the pandemic and upcoming peak season.
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