Despite Peak Season, China's Aluminium Semis Operating Rates Plunge in April

China: China's Aluminium plate/sheet, strip, and foil producers' operating rate drops in April. Monthly decrease of 1.68 percentage points, averaging 67.69%. Large enterprises record highest operating rate at 72.88%, followed by small and medium enterprises at 36.53% and 39.53%, respectively.

Aluminium plate/sheet and strip firms' operating rate declines m-o-m and y-o-y, down 1.90% and 10.87%, respectively. Foil producers record a higher operating rate of 74.61%.

Peak season fails to boost orders for Aluminium plate/sheet and strip companies in April. New and backlog orders decrease significantly resulting in diminished operating rates, while poor profits lead some companies to reduce operations. Domestic prices of products show no growth during the month.

Poor purchase interest among downstream customers contributes to domestic operation decline of Aluminium products. Analysis forecasts further drop-in operating rates for May 2023, with no signs of demand improvement as peak season ends.

Aluminium wire and cable producers' operating rate averages at 48.1% in April, with a 1% drop m-o-m. However, y-o-y comparison shows an increase of 6.5% in the operating rate. Large enterprises cut production in April after significant deliveries, while some conduct maintenance. Future demand for Aluminium wire and cable expected to increase due to power grid construction in South-West and North-West China.