Aluminum plate/sheet and strip production resumed as scheduled after the holiday, but downstream demand remains muted [SMM Analysis]

SHANGHAI, Feb 28 (SMM) – CNY holiday is over. SMM research has learned that most aluminum plate/sheet and strip companies that planned to suspend production during the Spring Festival have resumed production before Feb 17 as planned. However, many industry players pointed out that the market demand for aluminum plate/sheet and strip in the Year of the Dragon had a "unfavorable start."

It is now late February, and there is only one week left before the traditional peak season of March. However, aluminum plate/sheet and strip companies have reported that downstream demand has not shown signs of improvement, and recent real estate data has been unsatisfactory. Overseas consumption power is still weak, and automobile companies have stopped production, and industry confidence has been frequently impacted. Many industry players are worried that this year may once again face a "sluggish peak season" situation.

If the aluminum plate/sheet and strip market demand continues to be weak in 2024, considering that there are still millions of tons of aluminum plate/sheet and strip projects invested in 2021 and 2022 that will be completed , the supply and demand relationship may be further unbalanced, and a few large-scale enterprises that still have meager profits may start price wars again, accelerating industry reshuffles.