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07 SEPTEMBER 2022 AL CIRCLE

Primary aluminium alloy facilities in China expect weaker demand in peak season due to economic downturn

EDITED BY : SARNALI CHAKRABORTY 2MINS READ

SMM found that operating rates at primary aluminium alloy facilities in China in August were 42.64 per cent, a decline of 8.08 percentage points from the previous year but an increase of 1.3 points from the last month.

Primary aluminium alloy facilities in China expect weaker demand in peak season due to economic downturn

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Since August is typically the off-season for producing primary aluminium alloys, facilities reported weak downstream demand and exceedingly slow output and sales in August compared to July. Fortunately, the alloy makers were spared mainly by the covid-19 outbreak, electricity restriction, and natural calamity that plagued the home market.

Several businesses indicated that orders had climbed M-o-M with a seasonal rebound in September, the regular high season. However, most industry insiders believe the seasonal demand recovery this year will be slower than in previous years due to the economic downturn. Many businesses do not anticipate boosting their output in September and those that do expect a smaller gain than August. The average operating rate of leading aluminium alloy factories is expected to increase to 45 per cent in September.

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Generally, March through May and September through October are the traditional high seasons for the primary aluminium alloy industry, and most downstream businesses are situated in east China. Due to the epidemic, orders were incredibly low in 2022's first half. The total output of primary aluminium alloy for 2022 will decrease annually if the orders do not increase during the peak season in the year's second half.

Tagged with:

China Aluminium alloy SMM

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EDITED BY : SARNALI CHAKRABORTY 2MINS READ

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