24 JUNE 2014AlCircle.com
Average Operating Rate 61% to drop to at Chinese Aluminum FRP Producers in June
Edited by : AL CIRCLE
1 min read
The average operating rate at alumninium producers in China is expected to fall to 61% in the month of June, according to Shanghai Metals Market.
SMM says, the main reasons behind this drop are start of off-season as well as liquidity crunch. The tightening liquidity in mid-year and poor orders are a hindrance for aluminium fabricators from stocking the raw materials in good quantities but the growth of finished goods inventories are high, according to SMM survey.
With the cash squeeze biting in, the rejected orders of fabricators from the customers delaying payments have resulted in the growth of finished goods.
With cash squeeze biting in, fabricators rejected orders from those customers that delay payments for too long, causing finished goods inventories to grow.
SMM says, the main reasons behind this drop are start of off-season as well as liquidity crunch. The tightening liquidity in mid-year and poor orders are a hindrance for aluminium fabricators from stocking the raw materials in good quantities but the growth of finished goods inventories are high, according to SMM survey.
With the cash squeeze biting in, the rejected orders of fabricators from the customers delaying payments have resulted in the growth of finished goods.
With cash squeeze biting in, fabricators rejected orders from those customers that delay payments for too long, causing finished goods inventories to grow.
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