According to SMM survey statistics, the operating rate of the secondary aluminium industry in November 2025 rose 2.3 percentage points M-o-M to 46.3per cent, up 2.7 percentage points Y-o-Y.
The drivers for the increase in the operating rate in November included:
1. Seasonal production recovery: The disruption from the holidays subsided, and after the Double Festival holidays, domestic secondary aluminium enterprises gradually resumed a normal production pace.
2. Structural recovery in end-use demand: particularly, top-tier enterprises, mainly driven by automotive orders, accelerated capacity release, effectively boosting the overall industry operating level.
However, the release of industry capacity still faces multiple practical constraints, resulting in the increase in the operating rate falling short of market expectations. On one hand, raw material-side pressure remains high, the tight supply situation in the aluminium scrap market has not eased, and, coupled with raw material prices fluctuating at highs, enterprise procurement costs remain elevated. Some small and medium-sized secondary aluminium enterprises, constrained by raw material shortages, find it difficult to further expand capacity. On the other hand, policy uncertainties in regions such as Jiangxi and Henan suppress enterprise production enthusiasm, leading some local secondary aluminium enterprises to maintain cautious operations, such as remaining idle or implementing production cuts.
In December, relatively stable demand will continue to support the industry operating rate at a relatively high level. However, factors such as decreased winter dismantling volume and reduced import resources may lead to a persistently tight aluminium scrap supply, leaving limited room for further growth in raw material inventory. Additionally, high aluminium scrap costs, combined with significant price increases for copper auxiliary materials (recent copper prices broke through RMB 92,000 per tonne and repeatedly hit new highs), keep the comprehensive cost of secondary aluminium alloy under pressure. Meanwhile, potential risks of losses, expectations of regional environmental protection-driven production restrictions, and uncertainties in tax policies may further constrain capacity release. Overall, the industry operating rate in December is expected to drop back slightly from its highs.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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