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- China -

Primary Aluminum Alloy Operating Rate Edges Up to 56.6% in Early September

Production indicators for China’s aluminum value chain showed a marginal improvement at the start of September. The operating rate among primary aluminum alloy producers rose 0.2 percentage points month-on-month to 56.6% in the first week of the month. Analysts characterized the increase as modest, reflecting a “still sluggish” early-peak-season recovery. Resumption in parts of the primary processing sector, including aluminum billets, continued and helped divert liquid aluminum supply, supporting alloy plant utilization. The data suggest gradual normalization following earlier softness in downstream demand. No major interruptions were reported in power or raw material logistics. Inventories in some segments remained elevated, tempering the pace of operating-rate gains. Market participants will monitor the breadth of billet restarts and the progression of seasonal demand in construction, transportation and consumer durables through mid-September. The update did not include price targets or guidance from producers; instead, it provided a snapshot of utilization rates that inform expectations for near-term output. The measured uptick indicates that while peak-season effects are beginning to register, producers remain cautious pending stronger order flows. Further improvements may depend on end-market recovery and any policy signals affecting industrial activity or export channels for semi-fabricated products.

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