SHANGHAI, June 17 (SMM) - According to SMM survey, with the full resumption of work and production in Shanghai in June, the operating rates of large-scale aluminium extrusion increased slightly this week, up 0.6% to 69.8% from last week. 

The followings are the results of SMM survey of aluminium extrusion companies. Company A:  It is an enterprise in Zhejiang Province with 30,000 mt production capacity, mainly engaging in the research and development, production and sales of special profiles, automotive aluminium extrusion materials and other industrial aluminium extrusion materials.

Feedback: Some of the company's orders came from Shanghai OEMs. In April and May, the company's orders were severely suppressed by the pandemic in east China, hence the operating rates were only 40%. In addition, the company's transportation were also affected, and transportation costs rose by 30%. Since the end of May, Shanghai has resumed work and production smoothly. Therefore, orders from Shanghai OEMs increased significantly, production resumed to the normal level and was close to full production.

Company B: Located in Anhui Province, with 100,000 mt production capacity. The company is mainly engaged in construction extrusion and industrial extrusion, specializing in the production of aluminium alloy construction extrusion, decoration aluminium extrusion, and industrial aluminium extrusion. The products are widely used in doors, windows and curtain walls; decoration, sports, cultural and educational supplies; medical products, tourism and leisure; communications, electromechanical, furniture, transportation and other industries.

Feedback: Now the real estate policy stimulus is increasing, but the real estate industry is still sluggish with pessimistic market outlook. It is expected that the entire construction extrusion industry will remain in a downturn this year. The company's current production line operating rate was about 50%. In addition, the company is constantly expanding its business in automotive extrusion and photovoltaic extrusion, hoping to bring some increments in this area.

Company C: The company is located in Anhui Province. It mainly produces aluminium alloy construction extrusion, industrial extrusion, decorative profiles, aluminium alloy doors and windows, plastic steel doors and windows; aluminium wood windows, curtain walls; and research and development, design, production, installation and leasing of aluminium alloy construction extrusion formwork. 

Feedback: Although the overall domestic construction extrusion were not good, their orders were still relatively stable, and the operating rate stabled at around 80% in May and June. However, although this year's export orders were still good, they were not optimistic about the future export situation. The person in charge said that many local export orders were mostly backlog orders in the early stage, and subsequent orders may face the risk of withdrawal.

Company D: Located in Liaoning Province, with 60,000 mt production capacity. The company is mainly engaged in the research and development, production and sales of special profiles, automotive aluminium extrusion and other industrial aluminium extrusion.

Feedback: At present, the company's orders were relatively stable as the pandemic in the north-east China ended. The company's orders were stable as they mainly come from some rigid consumption. The photovoltaic extrusion part was in a state of full production this year amid the policies support, and the orders on hand were also relatively full, which were arranged to the next month. However, the competition will become fiercer as there may be more and more companies in the future.  

Survey summary: The resumption of work and production in Shanghai in June stimulated the recovery of automobile-related extrusion factories in east China. However, the market still held a pessimistic attitude towards the construction industry in China, and some enterprises will adjust flexibly and actively expand the business of automobile, rail, photovoltaic and other sectors of industrial extrusion. In addition, at present, the traffic conditions in various places greatly improved due to the eased pandemic, but the transportation costs was still about 15%-30% higher than normal. It is expected that throughout June, the operating rate of national extrusion enterprises will increase slightly compared with that in May.

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