In March 2022, the average operating rate of Chinese aluminium plate/sheet and strip producers was 79.22 per cent, up by 1.81 percentage points from the previous month but down by 1.14 percentage points on the year. The operating rate grew in line with the increased orders during the traditional peak season.
Inventories of finished products also moved up as the resurgence of the COVID-19 pandemic in late March hindered consumption and shipment of aluminium plate/sheet, strip and foil. Nonetheless, most enterprises of aluminium flat rolled products maintained operations in March, except for a few who had to cut production due to raw materials shortage. Therefore, the monthly operating rate, though lower than expected, stood higher than the previous month.
In April, the pandemic in east China was severe, resulting in a production cut or even suspension at some small and medium-sized aluminium plate/sheet, strip and foil enterprises due to difficulties in purchasing raw materials and slow capital turnover. Besides, the pandemic reduced the demand for aluminium plate/sheet and strip, causing a downfall in new orders at some producers in Henan, Shandong and other places.
Producers who could produce normally also curbed operating rates and began maintenance in the said month. This is likely to cause a potential decline in operating rate in April 2022 to around 74 per cent. The aggravation of pandemic will further suppress the operating rates of aluminium plate/sheet and strip industry.
Responses
