This week, the operating rate of leading aluminum foil companies rose by 0.7 percentage points to 80.4%. The main reason is that the market demand for batteries and air conditioners in May and June was better than expected. The production pace of some battery foil and air conditioner foil production lines has picked up. Most of the leading aluminum foil companies are involved in the air conditioner foil and battery foil business, causing a slight increase in the operating rate this week. The traditional packaging foil and double-zero foil markets are still sluggish, and most small and medium-sized aluminum foil markets are still struggling to operate. At the same time, many industry players pointed out that the sustainability of the improvement in demand for air-conditioning foils and battery foils needs to be verified. The industry's operating rate is not expected to continue to pick up in the future, and it is expected to still fluctuate slightly.
This week, the operating rate of leading recycled aluminum companies remained stable at 50.3% compared with the week before the holiday. During the Dragon Boat Festival holiday last week, there were few reserve stocks in the downstream, and die-casting plants mainly needed to purchase. After the holiday, the market continued to be weak this week. The overall transaction volume was light, and insufficient demand continued to suppress the upward trend of ADC12 prices. However, the limited decline in scrap aluminum during the week made it difficult for secondary aluminum plants to purchase raw materials and cost pressure still existed. This week, most major recycled aluminum plants are producing according to orders and their operating rates have remained stable. However, there are many companies in the industry that have reduced production due to factors such as production losses and insufficient demand. July and August are the traditional off-season for the industry, and consumption recovery is expected to be low. The short-term operating rate of the recycled aluminum industry is expected to decline.
