This week, the operating rate of leading secondary aluminum producers rebounded 0.6 percentage points WoW to 56.3%. With traders resuming operations, the domestic circulation of aluminum scrap continued to increase, easing raw material procurement pressure for secondary aluminum plants, and production levels rose slightly as a result. However, downstream demand recovery during the week was slower than expected, with weak end-user order releases. Coupled with increased operating rates in the industry and a rise in market supply, market prices lacked upward momentum. In the short term, the operating rate of the secondary aluminum industry is expected to remain largely stable, with continued attention on raw material supply and the pace of downstream demand recovery.

[SMM Analysis: Robust Orders Face Material Shortage Risk, Secondary Aluminum Operating Rate Stopped Rising in December] According to the SMM survey, the operating rate of the secondary aluminum industry in December 2024 slightly decreased by 1.6 percentage points MoM to 43%, ending a three-month consecutive increase.

[SMM Analysis: Robust Orders Face Material Shortage Risk, Secondary Aluminum Operating Rate Stopped Rising in December] According to the SMM survey, the operating rate of the secondary aluminum industry in December 2024 slightly decreased by 1.6 percentage points MoM to 43%, ending a three-month consecutive increase.