[China Aluminum Industry Network] According to the survey data of 28 aluminum processing companies in Henan, the average operating rate of aluminum processing enterprises with output of over 10,000 tons in December was about 75%, and the aluminum processing enterprises with an annual output of 1,000-10,000 tons averaged. The operating rate is about 71%; the average operating rate of aluminum processing enterprises with an annual output of 1,000 tons or less is about 63%.
In terms of orders: In December, the average orders of processing enterprises with 10,000 tons or more were at 5,000 tons, and the average orders for aluminum processing enterprises above 10,000 tons were about 1,500 tons, while the orders for aluminum processing enterprises below 10,000 tons were only maintained at around 100 tons. In November, the aluminum market continued to decline in the doldrums. Large-scale enterprises stated that as aluminum prices continued to decline, the order volume was relatively reduced, but long-term orders from old customers could basically maintain a 75% operating rate, but new orders were apparent. The decrease reflects the decline in aluminum prices in December, and the decline in aluminum prices in December was significantly affected by the end of the year. There are numerous small businesses in the surrounding area. Some companies have no orders to take over, and early holidays are closed.
In summary, in the month of December, the overall operating rate of aluminum processing companies in Henan was affected by the weak aluminum market at the end of the year, and the order volume was relatively reduced. Compared with previous years, the order volume decreased year-on-year, and the current order volume was only less than half of the previous years. The Henan region is a concentrated area for domestic aluminum processing companies. With the end of the year, some companies are already in the phase of shutting down and diverting, which shows that the aluminum enterprises in Henan are highly competitive. According to our understanding, some enterprises in Henan have transformed to innovation. In the development of new products, the current enterprises have shown that the revenue is good, but as the year approaches, orders are still shrinking. However, they are still full of confidence in the future development of the enterprise, and the adjoining enterprises are also accelerating the trend toward innovation after understanding the details. We believe that in the future, the aluminum enterprises in Henan Province will, as always, continue their path of innovation and development, and will surely lead the new development trend of domestic aluminum enterprises.
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