Chinese Aluminium FRPs operating rates declined 9.22 percentage points in January; February to see the lowest drop in 3 years

Shanghai Metals Market estimates a drop of 10 percentage points in operating rates of aluminium sheet, plate and strip manufacturers in February, to the lowest when compared to the same month in the past three years.

The average FRPs operating rates in January declined by 9.22 percentage points month-on-month and 2.6 percentage points year-on-year to 62.3 per cent in January. Large-scale producers saw a decrease of 9.84 percentage points, while medium and small-scale manufacturers witnessed a plunge of 9.25 and 11.72 percentage points, respectively.

Most of the producers remained shut a week more than previously expected due to the coronavirus outbreak, as they could not resume operation unless the local authorities approved.

But still the producers saw their capacity utilisation rates and productivity ramping up slowly.

Besides the inability of workers to resume work amidst the epidemic, concerns over logistical constraints and slow re-openings of end-users also kept producers of aluminium flat-rolled products from increasing production.

Even in a few instances, some large aluminium sheet, plate and strip producers, who did not suspend production during the Chinese New Year Holiday, had to trim output due to the epidemic outbreak.

The SMM survey also showed the orders of aluminium flat-rolled products from property decreased due to the adverse weather, but that from can and mechanical equipment held stable.