SHANGHAI, June 14 (SMM) - The average operating rate of aluminium extruders stood at 41.84% in May, down 0.81 percentage point month-on-month and 19.81 percentage points year-on-year, SMM survey showed. The average operating rates of large, medium-sized and small enterprises were 43.18%, 41.19%, and 26.92% respectively. From a month-on-month perspective, the operating rate dynamics of different size of enterprises diverged. On a year-on-year basis, the average operating rates of large, medium-sized and small enterprises fell 23.94 percentage points, 9.71 percentage points and 2.18 percentage points respectively. The average operating rate in the industrial aluminium extrusion sector stood at 47.55%, up 1.47 percentage points month-on-month, but down 15.55 percentage points year-on-year. The average operating rate in the construction aluminium extrusion sector stood at 40.11%, down 1.51 percentage points month-on-month and 19.69 percentage points year-on-year. The overall performance of aluminium extruders in May this year was far worse than in the same period last year.  The end demand, which was already sluggish, declined further under the impact of the pandemic. Some extruders in Wuxi were shut down due to the pandemic.

The raw material inventory/output ratio of aluminium extruders rose 0.14 percentage point on the month to 19.64% as the significant recovery of transportation from the pandemic and slightly improved orders encouraged extruders to increase their raw material purchases.

The finished product inventory/output ratio of aluminium extruders was basically flat amid a simultaneous decline in both the output and the finished product inventories.

Although the domestic pandemic was less severe than that in April, the overall resumption of production remained slow. The domestic pandemic situation was basically under control at the beginning of June, allowing the transportation to recover greatly. The market is now focusing on the recovery of consumption. Despite stimulus policies in the real estate market, the orders of construction aluminium extruders have not yet shown signs of recovery, and pessimistic sentiment is still strong.  In terms of industrial aluminium extrusion, the orders were relatively strong, especially from the photovoltaic sector. Some companies said their output for June has been fully booked and remain optimistic over future orders. In addition, some companies believe that the orders from the new energy vehicle sector will grow.

Thanks to the recovery of transportation and end consumption, the average operating rate of aluminium extruders is estimated to rebound from May to around 43% in June, but will remain below the levels in the same period last year.

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