In the first half of 2026, China’s aluminium extrusion industry presented an extreme pattern of structural divergence. Traditional construction extrusion demand remained persistently weak, dragging down the industry’s overall operating load, while industrial extrusion maintained high prosperity, underpinned by new energy, power, and heat dissipation sectors, serving as the core pillar of the industry. Meanwhile, linked volatility in aluminium prices intensified both in and outside China, with the price spread repeatedly narrowing. The export market experienced a “deep V-shaped recovery” trajectory, and the overall industry performance was characterised by “weak recovery in domestic demand, initial suppression followed by recovery in overseas demand, and a stark contrast between strong and weak structural segments.”
After the 2026 Chinese New Year, the industry entered its traditional peak season for resuming work. In March, extrusion enterprises concentrated on production resumptions and downstream clients engaged in concentrated restocking, pushing the industry’s composite operating rate to its H1 peak of 50.6 per cent.
Entering Q2, genuine downstream demand follow-through was insufficient, raw material prices fluctuated at high levels, and the industry was further impacted by the rainy season in south China and environmental protection inspections in some regions. As a result, the industry operating rate continued to pull back mildly, falling to 47.6 per cent in June, with the overall operating level weaker than the average for the same period over the past three years.
Construction extrusion was the core weak spot dragging down the industry’s overall operations. In H1, data on commercial housing transactions and new construction starts in China remained persistently weak; developers’ financial positions showed no significant improvement, and payment returns from project sites were slow. Orders for housing construction-related doors, windows, and curtain wall extrusions continued to shrink.