Weak balance of aluminium plate/sheet, strip and foil continues in May, export window in June unable to offset weak domestic demand
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Update time : 2025-06-12 16:42:10
According to SMM statistics, in May 2025, China's aluminium plate/sheet and strip production reached 1.151 million tonnes, with an industry operating rate of 66.37 per cent, down 0.86 percentage points M-o-M. Aluminium foil production was 441,000 tonnes, with an industry operating rate of 69.50 per cent, down 1.02 percentage points M-o-M.
In May, the aluminium plate/sheet, strip and foil industry maintained an overall "weak balance" situation, with the supply-demand imbalance continuing to deepen. The operating rate in the aluminium plate/sheet sector stabilised after minor fluctuations, mainly driven by the phase-wise cooling of the Sino-US trade war, which spurred rush to export by end-users in home appliances, electronics, and other sectors. However, weak domestic demand posed a significant drag: construction demand, a traditional off-season highlight, was short-lived, while automotive and electronics orders remained relatively stable but could not offset the overall decline. Meanwhile, downstream price collection triggered risks of processing fee discounts, intensifying market competition. The aluminium foil sector fluctuated downward, with notable demand differentiation—orders for new energy-related products such as battery foil and brazing foil weakened, reflecting inventory pressure across the industry chain. Meanwhile, household foil and container foil were mired in price wars, with processing fees plummeting, suppressing production. Despite the window of opportunity for exports provided by the easing of Sino-US tariffs, the industry still faced three major pressures (demand differentiation, deepening off-season, and high inventory), and the overall contraction trend remained unchanged.
