Chinese secondary aluminium producers operating rates recover 2.3 percentage points M-o-M in July 2020

According to the Shanghai Metals Market, the Chinese secondary aluminium producers operating rates increased by 2.3 percentage points on the month but fell by 5 percentage points from a year ago to stand at 50.3 per cent in July. Recovery in domestic and overseas automobile demand resulting in the hike in orders at some of the secondary aluminium alloy plants could be attributed to the increased secondary aluminium operating rates in July.

In June, the average secondary aluminium operating rates were 48 per cent after registering a month-on-month fall of 0.7 percentage points. In May, on the other hand, the operating rates had increased by 1.6 percentage points from the previous month to stand at 48.69 per cent.

Higher arrivals of aluminium alloy ingots from overseas to China in June attributed to the month-on-month downtick in the country's secondary aluminium operating rates, according to SMM observation.

In August again, the operating rates are likely to fall as domestic die-cast plants will take a one-week high-temperature vacation and the European market will enter a summer break.