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20 FEBRUARY 2023 AL CIRCLE

China’s aluminium processing enterprises report higher operating rates of 61.5% as demand starts recovering

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Shanghai Metals Market survey found China’s average operating rate across leading aluminium processing enterprises rose 1.7 percentage points last week to 61.5 per cent. Aluminium plate, sheet, strip, foil and construction extrusion sectors recorded operational growth with the gradual arrival of the peak season. In contrast, primary and secondary aluminium alloy and industrial aluminium extrusion sectors recorded muted operating rates due to the sluggish automobile market.

China’s aluminium processing enterprises report higher operating rates of 61.5% as demand starts recovering

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The average operating rate of large secondary aluminium alloy companies failed to recover the pre-CNY levels despite growing by 3.1 percentage points to 47.5 per cent. Slow demand recovery from various industrial sectors resulted in constrained operations. In addition, raw material shortages also plagued secondary aluminium alloy plants. At present, most companies are looking forward to the expected demand growth in March.

Domestic aluminium extruders also reported a marginal growth of 0.5 percentage points in their operating rates. The gloomy automobile market affected the industrial extrusion segment. However, on the other hand, the resumption of stalled real estate projects resulted in growing operations across construction aluminium extruders. Photovoltaic frame enterprises also maintained high operating rates, with some operating at full capacity.

The operating rate of large aluminium foil enterprises grew by 1 perentage points week-on-week to 80.4 per cent, with some production lines running at full capacity. Now that the impact of pandemic and Chinese New Year holiday has faded and consumption is recovering, aluminium foil operating rates are estimated to increase in the short term.

Global Aluminium Expo 2023

Large aluminium wire and cable companies recorded 3 percentage points hike in operating rates last week to 50 per cent, driven by mainly backlog orders. In addition, existing finished products stocks in warehouses discouraged producers from increasing output significantly. Only a handful of companies reported an increase in new orders. In the short-term, the operating rates of wire and cable companies are expected to continue to grow and stabilise.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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