31 JULY 2014Shanghai Metal Market
Operating rates at Chinese aluminum fabricators expected to fall in July
Edited by : AL CIRCLE
1 min read
The average operating rate at Chinese aluminum fabricators is expected to slide in July, Shanghai Metals Market foresees.
FRPs
The average operating rate will likely inch down to 60% at plate/sheet, strip and foil segments in July.
The arrival of the traditional off-season has caused orders to contract across the FRP sector. This has been exacerbated by the central government’s anti-corruption efforts, which are deterring end users, such as power companies, from purchasing larger volumes of aluminum FRPs, SMM has learned. Weaker demand should drag down operating rates across the sector.
Operating rates, however, are unlikely to fall dramatically as some fabricators are taking orders with thin to no margins to maintain stable output, SMM understands.
Extrusions
The average operating rate also appears set to drop to 60% at extruders in July, down on both a monthly and yearly basis.
Stable orders from the high-speed rail sector should keep operating rates stable at industrial aluminum extruders, while the sluggish housing market may send operating rates down at construction aluminum extruders, SMM estimates.
FRPs
The average operating rate will likely inch down to 60% at plate/sheet, strip and foil segments in July.
The arrival of the traditional off-season has caused orders to contract across the FRP sector. This has been exacerbated by the central government’s anti-corruption efforts, which are deterring end users, such as power companies, from purchasing larger volumes of aluminum FRPs, SMM has learned. Weaker demand should drag down operating rates across the sector.
Operating rates, however, are unlikely to fall dramatically as some fabricators are taking orders with thin to no margins to maintain stable output, SMM understands.
Extrusions
The average operating rate also appears set to drop to 60% at extruders in July, down on both a monthly and yearly basis.
Stable orders from the high-speed rail sector should keep operating rates stable at industrial aluminum extruders, while the sluggish housing market may send operating rates down at construction aluminum extruders, SMM estimates.
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