Chinese secondary aluminium operating rates inch up 1.6 percentage points in May 2020
According to Shanghai Metals Market, operating rates across China’s secondary aluminium industry increased 1.6 percentage points month-on-month to stand at 48.69 per cent in May. In April, China’s secondary aluminium industry’s operating rates were 47.08 per cent, lowering 0.22 percentage point from the previous month.
However, year-on-year, China’s May secondary aluminium operating rates inched down by 5 percentage points, showed the SMM data.
The month-on-month hike in Chinese secondary aluminium operating rates in May could be attributed to the ramp-up of operations with the slight improvement of auto sales amid the government’s stimulus efforts. Industry data showed China’s production and sales of automobiles recorded double-digit growth in May from a year ago.
On the other hand, the overseas inflow of aluminium alloy ingots did not exert hefty pressure on Chinese secondary aluminium producers; rather, allowed them to maintain stable operations.
For June, however, it is estimated that small and medium-sized secondary aluminium producers in China to bear the impact of increasing imports. The average operating rates are likely to stand lower across the domestic industry.
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