Chinese secondary aluminium producers operating rates extended growth in October
Shanghai Metals Market found operations at Chinese secondary aluminium producers continued to increase in October, as overall demand in the second half of the year improved from the first half.
An SMM data showed the Chinese secondary aluminium operating rates in October stood at 60.69 per cent after rising by 0.83 percentage points month-on-month, while over the year they climbed up by 4.71 percentage points.
In July and August 2019, the operating rates were at 55.28 per cent after growing by 3.04 percentage points over the month and at 56.46 per cent after climbing up by 1.18 percentage points respectively, indicating that they had been growing incessantly over the months. However, the growth in operating rates in October stood the lowest in the past four months as continued shortage of aluminium scrap affected production at some secondary smelters.
In November, the shortage of aluminium scrap is likely to continue amid low inventories, impacting on the operating rates at secondary aluminium producers, despite steady demand for the downstream aluminium.
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