Secondary aluminium producers operating rates increased in November by more than 1 percentage points

Shanghai Metals Market survey found Chinese secondary aluminium producers operating rates continued to increase in November amidst rising demand from downstream automakers at year-end.

According to the data, the operating rates across Chinese secondary aluminium producers rose to 62.57 per cent in November, up 0.05 percentage point month on month and 1.05 percentage points over the year. In October, the operating rates were 61.52 per cent after recording a rise of 0.83 percentage point from September and 4,71 percentage points from October 2018.

Large-scale secondary aluminium producers contributed to most of the rise in operating rate. Also, improved orders from carmarkers boosted operating rates at some major producers of secondary aluminium to the highest level this year.

However, the overall increase in secondary aluminium operating rates was capped as small and medium-scale producers, especially in Ningbo of Zhejiang, and Foshan and Qingyuan of Guangdong, reduced production significantly due to limited raw materials supply.

However, in December, the secondary aluminium producers operating rates are expected to fall, despite the ongoing restocking before the Chinese New Year holiday. That’s because producers are accepting limited orders for December on greater increase in aluminium scrap prices compared with finished products.