This week, the operating rate of major Chinese downstream aluminium processing companies was 64.1 per cent, down 0.3 percentage points week-on-week. The sector as a whole showed a weak recovery trend, but significant structural divergence persisted internally.
The operating rate for aluminium wire and cable rose 0.4 percentage points week-on-week to 68.0 per cent, driven by strong growth in export orders and support from power grid projects. The operating rate for aluminium sheet and strip fell 0.4 percentage points to 72.6 per cent; although high aluminium prices suppressed downstream commodity withdrawals, demand for battery casings and brazing materials for the energy storage sector, along with strong growth in export orders for new energy vehicles, provided a floor to offset weak demand for standard sheets.
The operating rate for primary aluminium alloys remained stable at 58.2 per cent, supported by resilient exports and stable domestic demand; falling aluminium prices boosted downstream inquiries, but conversion into orders remained limited.
The operating rate for aluminium extrusion rose slightly by 0.2 percentage points to 57.6 per cent, with the peak construction season in northern China and deliveries of photovoltaic frame orders driving the recovery in extrusion for construction and industrial use, although the weak real estate recovery continued to weigh. The operating rate for aluminium sheets fell by 0.4 percentage points to 73.6 per cent; demand for sheets for energy storage batteries was high, while production of sheets for air conditioning was hampered by weak domestic demand and high inventory.