According to the survey statistics of recycled aluminum bar sample enterprises, the capacity utilization rate of Chinese recycled aluminum bar sample enterprises in July was 43.73%, an increase of 0.58% from the previous month and a decrease of 3.06% from the same period last year.
The capacity utilization rate has dropped significantly year-on-year. The reasons for this are mainly due to the following aspects:
1. Performance of aluminum prices is not ideal
Since the middle of the year, aluminum prices have continued to fluctuate, and overseas energy supply disturbances are still underpinning aluminum prices. Short-term supply and demand fundamentals are still weak. In the absence of further expansion of production cuts, aluminum prices are relatively strong and show no trend. In this context, recycled aluminum rod manufacturers are faced with a situation of buying high and selling low, so they choose to reduce production and ship a small amount. .
2. Continued high temperature weather
Since August, the temperature in many regions has risen again, and the temperature in many places has reached above 40 °C. According to the national highest temperature ranking, the highest temperature in Hubei, Hunan, Jiangxi, and Zhejiang has reached above 39 °C, and the highest temperature in some counties and cities can reach above 41 °C. The high temperature makes the production of recycled aluminum rods more consuming manpower and material resources, increasing the difficulty of production, and at the same time inhibiting some terminal demands.
3. Scrap aluminum raw materials continue to be in short supply
At present, the recycling of scrap aluminum is generally fast in and out, but with the further reduction of the supply of goods in the market, and the short-term high fluctuation of aluminum prices, the delivery speed is appropriately adjusted. Increment. In the first ten days of August, with the recovery of primary aluminum prices, most of the manufacturers' orders improved slightly compared with the previous month, and they actively purchased raw materials. However, due to the shortage of scrap aluminum supply and the difficulty in procurement, the proportion of primary aluminum/aluminum rod procurement was increased.
4. The off-season performance is obvious, and the recycled aluminum rod market continues to be weakerminal demand is tepid
Affected by the traditional off-season and hot weather, since July, the operating rate of aluminum profile enterprises has dropped sharply, and the new orders of aluminum profile manufacturers are seriously insufficient, resulting in a sharp drop in the operating rate. The market demand for construction aluminum profiles has fallen sharply. Although the demand for automotive and photovoltaic industries has increased, it cannot effectively make up for the weak demand. Downstream profile manufacturers generally only have some scattered orders, with 4-60% production lines, and aluminum rods just need to be purchased as host.