aluminium expo |The aluminum rod industry is not in a slump! Production in November reaches a new high for the year!
In November, the aluminum rod market is currently in a phase of scheduled deliveries. The ultra-high voltage projects are progressing steadily, and terminal constructions such as State Grid Corporation of China and
China Southern Power Grid are in full swing. The overall market trading is hot, and market demand is strong. Furthermore, the aluminum base price is currently at a relatively low level. Despite this, the overall processing fees in the market remain high. Aluminum rod manufacturers have many outstanding orders, and their willingness to hold prices firm is high.
According to a survey and statistical analysis of sample data from aluminum rod manufacturers across the country conducted by the aluminum expo, there has been some capacity recovery in the aluminum rod supply sector in November, leading to overall stable supply operations.
As of November 2023, China's installed capacity for aluminum rod production stands at 7.22 million tons. In November, the total national aluminum rod production reached 381,000 tons, an increase of 18,000 tons compared to October (which had 31 days), representing a significant 5% increase. The domestic aluminum rod production rate in November was 63.3%, compared to 60.3% in October, indicating a 3.0% month-on-month increase.
The increase in aluminum rod production in November can be attributed primarily to two factors: firstly, an increase in terminal orders, and secondly, the formal operation of new production capacities. According to research findings, in November, there was a concentration of downstream delivery periods, with cable companies in particular operating within their delivery schedules. Terminal orders showed a noticeable increase, and aluminum rod manufacturers had many outstanding orders, resulting in relatively tight market supply. Additionally, with the shift of the aluminum base price downward, the processing fees increased significantly, leading to a substantial rise in the enthusiasm of enterprises for production. Furthermore, new production capacities in regions such as Yunnan and Inner Mongolia came into operation, contributing to a partial increase in the overall supply of aluminum rods. Some in-production companies also shifted their production focus to aluminum rods, which demonstrated slightly better order and profit performance.
Due to the impact of factors such as the formal operation of new production capacities, the continuous rise in processing fees, and the relatively concentrated downstream orders in November, domestic aluminum rod production and production rates reached a new high for the year. Overall, aluminum rod companies are maintaining a stable and positive supply situation, and the probability of substantial production reduction in the short term is low. It is anticipated that there will be some new production capacities awaiting deployment by the end of the year.