Chinese secondary aluminium operating rates continue to grow in August gaining 2.8 percentage points M-o-M

According to the latest data shared by the Shanghai Metals Market, China’s secondary aluminium producers operating rates gained 2.8 percentage points month-on-month in August to stand at 53.1 per cent. However, on a year-on-year basis, the operating rates fell by 3.4 percentage points.

In July, Chinese secondary aluminium operating rates were 50.3 per cent, up by 2.3 percentage points month-on-month but down by 5 percentage points over the year.

In June, however, the operating rates at China’s secondary aluminium makers declined month-on-month by 0.7 percentage points to come in at 48 per cent.

The consecutive rise in operating rates in July could be attributed to the lower imports of aluminium alloys from early August, resulting in market shares of domestic cargoes. Besides, some downstream users stepped up production even in a low season as their operating days were shortened due to the pandemic.

SMM estimates a further rise in secondary aluminium operating rates to about 55 per cent in September, a traditional high season.

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