Operating rates across Chinese aluminium processors dipped 0.7 percentage point in week ended on June 11

Operating rates across major aluminium processors in China dropped 0.7 percentage point week-on-week to 75.7 per cent in the week ended on Friday, June 11. But aluminium wire and cable outperformed other sectors, buoyed by backlog orders. Aluminium foil companies’ operating rates also grew slightly as wait-and-watch sentiment eased with smaller fluctuations of aluminium prices. Operating rates at aluminium extrusion and alloy producers showed signs of weakening as orders dropped slightly.

Operating rates at major primary aluminium alloy enterprises stood flat from the previous week. Orders fell sharply, with many large producers reporting 10-25 per cent decline in production and sales in May when compared with normal levels. It is expected that operating rate will remain at a low level in the coming months.

Operating rates across aluminium plate, sheet and strip producers dropped to 87 per cent last week as some companies put facilities under maintenance. Operating rates of aluminium wire and cable companies, on the other hand, remained stable.

Operating rates at major aluminium extrusion producers dropped slightly. Large construction extrusion companies reported strong demand from the real estate and infrastructure sectors, while small and medium-sized companies said clients were cautious about placing orders amid volatile aluminium prices. In terms of industrial extrusion, demand from the electronic and rail transport sectors was strong, while demand from the car industry remained affected by chip shortfalls.

Operating rates at major aluminium foil producers rebounded to 90.3 per cent, while secondary aluminium alloy producers’ operating rates dropped 0.6 percentage point from a week ago to 58.8 per cent.