Chinese secondary aluminium operating rates remain low in October due to sluggish demand

Shanghai Metals Market data showed operating rates across Chinese secondary aluminium producers averaged 56.81 per cent in October, down 1.44 percentage points from a month earlier and 3.19 percentage point from a year earlier.

This month-on-month and year-on-year fall in secondary aluminium operating rate could be because of the weak demand for aluminium among downstream consumers.

Production and sales of automobile in October decreased by 10.1 per cent and 11.7 per cent year-on-year respectively, showed data from the China Association of Automobile Manufacturers (CAAM). During January-October, production and sales also stood lower by 0.4 per cent and 0.1 per cent than the same period last year.

The downbeat consumption figures came in line with SMM’s research on output across Chinese secondary aluminium producers. While several producers with brisk export orders held stable last month, most secondary aluminium producers reduced output.

As of November 10, most producers reported SMM that they did not receive more orders significantly. SMM expects the operating rates across Chinese secondary aluminium producers to stay at 56 per cent in November.