This week, operating rates across sub-sectors of China's aluminum processing industry continued their overall weak trend. The post-Labour Day holiday effect, combined with wild swings in aluminum prices, led to varying degrees of WoW pullback in operating rates across most sectors, with the overall rate recorded at 64.2%. Specifically, aluminum plate/sheet and strip operating rate fell to 72.6%, aluminum foil edged down to 74.7%, aluminum wire and cable recorded 66.6%, primary aluminum alloy rose slightly to 58%, leading secondary aluminum enterprises dropped to 57.0%, and aluminum extrusion operating rate also slipped slightly to 56.1%. Demand side, post-holiday aluminum prices fell by 480 yuan/mt in a single day, causing some traders to incur book losses, with cargo pick-up sentiment generally subdued. Underperforming real estate terminal completions continued to drag on construction extrusions and the air-conditioner foil segment within aluminum foil. PV frame enterprises also reduced their May production schedules, and passenger NEV growth falling short of expectations placed certain constraints on primary aluminum alloy. Overall, the consumption side was gradually showing traditional off-season characteristics. Cost side, high aluminum prices suppressed downstream enterprises' willingness to stockpile, compliant aluminum scrap sources remained tight with prices staying elevated, secondary aluminum industry profits continued to be under pressure, and some enterprises had already fallen into losses. However, aluminum wire and cable export orders continued to climb, with April expected to approach historical highs. Within aluminum extrusion industrial orders, heat sinks and industrial machinery accessories performed relatively well. Within aluminum foil, demand for food packaging foil, pharmaceutical foil, and battery foil remained stable. Automotive aluminum sheets & plates orders also benefited from the YoY and MoM double growth in April passenger NEVs, maintaining a recovery trend. Overall, in the short term, the aluminum processing industry's overall operating rate still faces downward pressure. The demand off-season and cost pressure form a dual suppression, and operating rates across sectors are expected to be under pressure in May. However, strengthening export orders and structural recovery in certain industrial demand segments will provide some bottom support for the industry. Primary aluminum alloy: This week, the primary aluminum alloy operating rate was 58%, showing a slight recovery WoW, but the rebound remained limited. Structurally, aluminum consumption at some enterprises increased, driving the overall operating rate slightly higher. However, most enterprises continued to primarily execute long-term contracts as normal, with overall operations running steadily. Current aluminum prices remained at elevated levels, suppressing downstream enterprises' willingness to stockpile, with most enterprises maintaining low inventory operations. Additionally, passenger NEV growth falling short of expectations also resulted in relatively slow demand growth. Overall, the primary aluminum alloy operating rate is expected to remain at the current level next week. Aluminum plate/sheet and strip: The operating rate of leading aluminum plate/sheet and strip enterprises edged down 0.4 percentage points WoW from pre-holiday levels to 72.6% this week. On the operational front, production lines at leading aluminum plate/sheet and strip enterprises ran normally during the Labour Day holiday with a steady production pace, but initial signs of operational pressure emerged in the industry. Post-holiday, aluminum prices pulled back, with a single-day drop of 480 yuan/mt. Some traders and dealers incurred book losses after purchasing, and sentiment for picking up goods was generally low. By product, domestic end-use demand for can stock packaging remained stable; auto sheets & plates orders benefited from the recovery of passenger NEVs in April with both YoY and MoM growth, still in a recovery trend; 1-series common plates and civilian general aluminum semis saw weak orders due to delayed cargo pick-up for engineering orders and shrinking civilian demand. In the short term, constrained by factors such as wild swings in aluminum prices and pressure on common plate orders, downward pressure on the operating rate of leading aluminum plate/sheet and strip enterprises is gradually increasing in May. Aluminum wire and cable: The operating rate of China's aluminum wire and cable industry registered 66.6% this week, edging down 1 percentage point WoW from pre-holiday levels. Although top-tier enterprises still held some power grid orders, they proactively reduced production loads due to the holiday factor and order losses, resulting in a decline in capacity utilization rate. Currently, domestic power grid end-use demand still dominates consumption, but the concentrated cargo pick-up cycle has passed, providing limited support to the overall industry operating rate. In contrast, export orders for aluminum stranded wire climbed, and Q2 exports are expected to increase significantly this year. April exports are expected to approach or break historical highs, and May exports are expected to increase by 10,000-20,000 mt MoM. Export orders will provide support to industry operations. Aluminum extrusion: The operating rate of China's aluminum extrusion industry was 56.1% this week, down 0.4 percentage points WoW, showing a generally stable but weakening trend. By segment, for architectural extrusion, dragged by domestic real estate terminal completion progress falling short of expectations, engineering orders continued their weak trend this week, and demand growth in the home decoration doors and windows segment was limited, failing to provide effective support, slightly dragging down the overall operating performance of architectural extrusion. For industrial extrusion, downstream tier-one PV module enterprises' May production schedule plans contracted, and PV frame enterprises saw a decline in operating rates. Some Hebei frame enterprises chose to shut down for 5 days during the Labour Day holiday to offset order pullback and ease cost pressure, maintaining a relatively full production schedule after the holiday; some Anhui frame enterprises reported that orders on hand remained generally stable with no significant reduction, resulting in relatively limited drag on operations. Additionally, large Guangdong aluminum extrusion enterprises reported that recent orders for heat sinks, industrial machinery accessories, and other industrial extrusion products performed well, providing support to regional industrial extrusion operations. In the short term, the weakness in architectural extrusion and the structural recovery in industrial extrusion offset each other, and the aluminum extrusion operating rate is expected to show a stable and improving trend. Aluminum foil: This week, the operating rate of leading aluminum foil enterprises fell 0.3 percentage points WoW from pre-holiday levels to 74.7%. Order side, demand for food packaging foil, pharmaceutical foil, and battery foil remained stable, supporting the baseline operating rate. Air-conditioner foil was under pressure, with May orders on hand declining MoM, as demand was dragged down by factors including a sluggish real estate market, tapering of national subsidies, high inventories outside China, and capacity relocation. Both domestic sales and export schedules declined, and weak end-use demand is expected to pull down the overall aluminum foil operating rate. In the short term, demand for packaging foil and battery foil can still support the aluminum foil operating rate at a relatively high level, but the deep weakness in air-conditioner foil will set the stage for an overall pullback in the aluminum foil industry's operating rate in May. Secondary aluminum: This week, the operating rate of leading secondary aluminum enterprises in China fell 0.7 percentage points WoW to 57.0%. During the holiday, sampled major plants maintained normal production, but affected by some downstream enterprises being on holiday and declining orders, enterprises compressed their production pace, and operating levels pulled back slightly. Currently, both demand and raw materials exerted dual pressure on production: on one hand, May gradually entered the traditional consumption off-season, downstream procurement became more cautious, market transaction activity continued to decline, and manufacturers' order performance was poor; on the other hand, finished alloy ingot prices fell more than raw material prices, compliant aluminum scrap sources remained tight with prices fluctuating at highs, industry profits continued to narrow, and some enterprises even fell into losses, with operating rates passively under pressure. After the holiday effect fades next week, the operating rate is expected to recover slightly, but the demand off-season and cost pressure are unlikely to improve significantly in the short term, and the industry's overall operating rate still faces downward expectations. [Data source statement: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.]

This week, the weekly operating rate of leading downstream aluminum processing enterprises in China was flat MoM at 64.7%. such as can stock, energy storage, and automobiles. However, aluminum prices fluctuated at highs, exports to the Middle East were impeded, and some end-use consumption recovered less than expected, limiting upside room for the operating rate. The industry exhibited the characteristics of “steady with progress and structural divergence.”

This week, the weekly operating rate of leading downstream aluminum processing enterprises in China rebounded 1.1 percentage points MoM to 64%.

[Weekly Operating Rates in the Aluminum Processing Industry: China's Aluminum Processing Sector Sees Modest Growth Amid Peak Season Demand] This week, the weekly operating rate of leading downstream aluminum processing enterprises in China edged up 1 percentage point WoW to 62.9%.

[SMM Weekly Survey of the Aluminum Downstream Sector: Downstream Aluminum Operating Rate Continued to Rebound to 61.9%, with High Prices Suppressing the Peak "Golden March" Season] This week, the weekly operating rate of leading downstream aluminum processing enterprises in China rose 2.4 percentage points MoM to 61.9%, overall extending the post-holiday recovery trend, with all segments rebounding MoM, and the industry as a whole entering a normal production pace.

In 2024, the usage of industrial aluminum extrusion in sectors such as automotive, aerospace, marine, high-end equipment, and 3C continued to grow. Simultaneously, the Chinese industrial aluminum extrusion market faced numerous challenges, including cut-throat competition, the emergence of new alternative materials, high and volatile raw material prices, technological bottlenecks, international trade frictions, and the cancellation of export tax rebates. Consequently, in 2025, the primary issue aluminum extrusion enterprises must confront remains how to survive. This necessitates a comprehensive and profound understanding of the industry's current state both domestically and globally, enabling better formulation of corporate strategies to address the increasingly severe industry challenges. However, colleagues in the aluminum extrusion industry must also recognize that challenges bring opportunities. For instance, the "low-altitude economy" actively guided at the national level has introduced new application scenarios for the aluminum extrusion industry. In the NEV sector, annual sales in 2024 are expected to exceed 12 million units, with the average aluminum usage per vehicle also rising. The proportion of aluminum extrusion in sub-sectors such as electric drive housings and threshold beams is also increasing. To cope with the increasingly frequent international trade frictions, many aluminum enterprises and end-users have chosen to expand overseas, investing in factories in Southeast Asia, Mexico, Eastern Europe, and even Africa. Therefore, SMM is preparing to screen enterprises, conducting a survey of industrial aluminum extrusion producers nationwide, and organizing the selection of the top 20 high-quality suppliers of industrial aluminum extrusion in the country, selecting benchmark enterprises. On the other hand, SMM focuses on the direction of industrial development, collaborating with major associations and institutions across the industry chain to jointly create the 2025 Global Industrial Aluminum Extrusion Procurement Guide , aiming to provide aluminum procurement professionals with an authoritative, comprehensive, professional, and market-compliant directory of industrial aluminum extrusion suppliers. This guide serves as a bridge between procurement professionals and aluminum extrusion producers, collectively promoting the industrial aluminum extrusion industry to better meet the challenges of the new era. Therefore, enterprises in the industrial aluminum extrusion sector can submit audit materials as required, summarizing actual production data up to the end of 2024, and apply for inclusion in the procurement guide. After annotation and layout, the materials will be submitted to the Ministry of Natural Resources of the People's Republic of China for review and approval, obtaining the approval drawing number , and then printed and distributed to upstream and downstream industry clients. Additionally, qualified industrial aluminum extrusion producers, related high-quality suppliers, and equipment service providers in the industry chain are invited to participate in the joint creation of the procurement guide, collectively contributing to the healthy and rapid transformation and upgrading of the industrial aluminum extrusion industry. After conducting surveys among frontline aluminum extrusion producers and equipment manufacturers, SMM (Shanghai Metals Market) proudly presents the "2025 Global Industrial Aluminum Extrusion Procurement Guide." This time, Anhui Bolan New Material Technology Co., Ltd. will collaborate with SMM to jointly produce this procurement map, collectively analyzing market trends and exploring the future of the industry! Anhui Bolan New Material Technology Co., Ltd. is a new-type circular economy enterprise invested and established by Tonglu Bowang Industry and Trade Co., Ltd., specializing in the R&D, production, and sales of secondary aluminum products. The company is located in Anhui province, covering an area of 110 mu, and will be constructed in two phases. Phase I covers 62 mu, with a total construction area of 40,000 m². The total planned investment is 300 million yuan. Construction officially commenced in September 2024 and is expected to be completed and put into operation by May 2025. As an innovative force in the secondary aluminum industry, the company has established a complete green production system. Leveraging core equipment such as domestically leading 100T double-chamber melting furnaces, 35-ton tilting refining furnaces, and internal-guide hydraulic casting machines, the company has formed an annual production capacity of 100,000 mt of secondary aluminum billets and aluminum ingots. The production line adopts an intelligent "1+1+3" configuration model, where one 100T circular double-chamber melting furnace, one 60T circular melting furnace, and three 35T circular tilting alloy furnaces operate collaboratively to achieve efficient recycling of aluminum scrap resources. Through the independently innovative "crushing-deironing-sorting" pretreatment process, the company strictly controls the raw material particle size to ≤200*150mm, ensuring 100% clean production of commercially purchased aluminum scrap. The company consistently practices the concept of sustainable development, driving industrial upgrading through technology. By introducing advanced equipment such as the domestically pioneering secondary aluminum circular double-chamber furnace group, the company has established a closed-loop industry chain spanning from aluminum scrap recycling to high-end aluminum material manufacturing. Upon project completion, it is expected to achieve an annual sales revenue of 2 billion yuan, with annual tax payments exceeding 150 million yuan, and provide over 200 job opportunities, effectively promoting the green transformation of the regional economy. Adhering to the mission of "empowering aluminum processing," Anhui Bolan will continue to promote the deep integration of process innovation and intelligent manufacturing, striving to become a benchmark in the secondary aluminum industry with a craftsman's spirit of excellence, injecting new momentum into the low-carbon development of China's aluminum industry. Main Products 6063, 6061, 6005 aluminum billets, as well as 3-series and 5-series alloy aluminum billets. The company also accepts commissioned processing of various grades of alloy aluminum billets and aluminum plate ingots. Slogan Achieve Excellence in Management, Build a First-Class Enterprise, and Create a Renowned Brand Production Equipment Contact Information No. 20, Xingtong Road, Economic Development Zone, Wuhe County, Bengbu City, Anhui Province Chen Jinhui: 18650063711 Chen Xingmao: 183 5812 8555 Joint Production Contact Sun Lingchen Mobile: 15166852590 Landline: 0535-51595891 Email: sunlingchen@smm.cn