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21 JUNE 2023 AL CIRCLE

China’s aluminium plate/sheet and strip operating rates drop to 65.04% in May, indicating early onset of off-season

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the Shanghai Metals Market survey, China's aluminium plate/sheet and strip industry operating rates edged 0.97 percentage points lower month-on-month to an average of 65.04 per cent in May 2023. On a year-on-year calculation, the operating rates plunged by 12.25 percentage points.

China’s aluminium plate/sheet and strip operating rates drop to 65.04%  in May, indicating early onset of off-season

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May experienced a weaker demand for aluminium plate/sheet and strip, which dampened the operating rates. New orders were lesser in the said month compared to April. Advance production assuming customers' requirements is also tricky, given the customised nature of these orders.

Aluminium plates/sheets are mostly used in construction, industrial, packaging, and transportation. Among all the sectors, transportation, especially electric vehicles, accounts for the highest demand of aluminium plates/sheets. But in the last month, many aluminium plate/sheet and strip businesses could not yield benefits from the transportation sector demand, leading to low operating rates.

Meanwhile, aluminium plate/sheet and strip demand in food packaging, industrial, and construction sectors hovered below the last year's level. June to August is usually an off-season for aluminium plate/sheet and strip, but this year, order slowdown started showing up from May-end, indicating an early onset of the weak market.

SMM estimates no rebound in the operating rates for the next three months, given the aluminium plate/sheet and strip producers are finding difficulty in maintaining the current order levels amid the worldwide economic slowdown this year.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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