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13 JUNE 2019 AL CIRCLE

China’s secondary aluminium operating rates down 4.2 percentage points YoY in May

EDITED BY : HEENA IQBAL 1MINS READ

According to Shanghai Metals Market, operating rates across Chinese secondary aluminium producers stood at 53.73% in May, down 4.6 percentage points from April, and 4.2 percentage points from May 2018.

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Car inventory clearance ahead of the new emission standards kept demand for secondary aluminium weak. Inventories of finished products at secondary aluminium producers had grown on weak demand from end-users, and this drove them to curb production.

SMM reported that Inflows of seaborne ADC12 weighed on the domestic low-end market, and this shrank profit margins that producers could incur, resulting in production cuts.

In April, operating rates across secondary aluminium producers averaged 58.37%, down 3.05 percentage points month-on-month but up 0.05 percentage point year-on-year.

SMM expects the operating rates across secondary aluminium producers in China to extend their declines, to stand at 50% in June.

Tagged with:

China Aluminium SMM Inventory

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EDITED BY : HEENA IQBAL 1MINS READ

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