China’s aluminium plate and strip operating rates increase to 68.6% in August on the rise in demand for domestic products
The Shanghai Metals Market survey found that operating rates at aluminium plate and strip producers stood at 68.6 per cent in August, rising by 0.46 percentage point from the month earlier. However, on a year-on-year basis, the operating rates stood down by 1.76 percentage points, according to SMM.
Backlog orders at producers could help them sustain production for 20 days on average, up 3 days from July. Production schedules at large producers were 21-45 days, while at smaller manufacturers were just 14 days. Orders for construction and decorative plate and strip were largely stable but for can stock and can tab weakened following summer high season. Demand for PS printing plates and 3C electronics materials was also weak, while demand for automotive sheet recovered slightly.
Exports are recovering gradually but still weaker compared to the year last. Orders in August increased as demand shifted to the domestic market, which even prompted many producers to lower offers for securing more and more orders.
In September, aluminium plate and strip operating rates are expected to continue to increase by nearly 2 percentage points month-on-month as producers expect new orders to grow during the traditional peak season and backlog orders at large producers to sustain production throughout the month.
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