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17 JULY 2019 AL CIRCLE

Chinese secondary aluminium producers operating rates decline in June for the third month in a row

EDITED BY : DEBANJALI SENGUPTA 1MINS READ

Shanghai Metals Market survey shows the operating rates of Chinese secondary aluminium producers have fallen for the third consecutive month in June to 52.24 per cent, down 1.49 percentage point month-on-month and 0.5 percentage point year-on-year.

Chinese secondary aluminium producers operating rates in June

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Sluggish secondary aluminium demand among carmakers and dealers as they attempted to clear inventories before new vehicle emission standards took effect in July could be attributed to this fall in operating rates.

Moreover, continued weakness in the car market grew inventories of finished goods across secondary aluminium producers, resulting in production curtailments in June.

In May, the operating rates were at 53.73 per cent after falling 4.6 percentage points from April and 4.2 percentage points from May 2018.

Red Mud Report

Shanghai Metals Market suggests the secondary aluminium producers operating rates to record further decline in July, in anticipation of poorer demand after massive car sales promotion in previous months and as a traditional low season grinds on.


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EDITED BY : DEBANJALI SENGUPTA 1MINS READ

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