[SMM Analysis]Analysis of Import and Export Data for Unwrought Aluminum Alloy, January-February 2026

SMM, March 20: The SMM weekly operating rate of secondary lead across four provinces stood at 39.57% from March 13 to March 19, 2026, up 10.42 percentage points WoW. Production at enterprises in Anhui was relatively stable, while the resumption progress at other smelters was slow; raw material inventory among enterprises in Henan diverged, with mixed changes in operating rates; enterprises in Jiangsu, affected by losses, showed intentions to cut or suspend production; and a large secondary lead smelter in Inner Mongolia resumed production, driving a sharp increase in the operating rate this week. Next week, enterprises resuming production will continue to release capacity, and market attention should focus on whether loss-making enterprises will implement production suspensions in the secondary lead operating rate. 》Subscribe to View Historical SMM Metal Spot Prices

Copper prices fluctuated downward this week. At the start of the week, expectations for US Fed interest rate cuts continued to cool, and the market even began to price in possible rate hikes, weakening expectations for macro liquidity and putting copper prices under pressure, causing them to pull back. Mid-week, after the US Fed kept rates unchanged, the US PPI annual rate rose more than expected to 3.4, further weighing on market expectations for interest rate cuts within the year. According to market sources, traders no longer priced in any US Fed interest rate cuts this year, and bets on easing expectations faded further. The continued escalation in US-Iran tensions fueled safe-haven sentiment, while elevated oil prices intensified concerns over inflation and economic weakness. The stronger US dollar index also suppressed copper prices. In terms of fund positioning, the futures were mainly marked by long liquidation, with risk-off sentiment among funds rising and willingness to take profits at high levels increasing. Overall, macro headwinds dominated market sentiment, and copper prices came under pressure and corrected lower. Fundamentals side, copper concentrates TC continued to pull back. This week, the imported copper concentrates index was reported at -$67.32/mt, further lower WoW and at a historical low, with smelting pressure continuing to mount. In copper cathode, the continued downward shift in the center of copper prices significantly stimulated restocking demand from downstream enterprises, and spot inventory showed a rapid destocking trend. The import window remained open, but actual subsequent inflows of imported cargo still need further observation. According to SMM, orders at most downstream enterprises surged, with generally strong enthusiasm for buying the dip. Some sectors were notably boosted by the pullback in copper prices, and order performance improved. Looking ahead to next week, the macro logic remains unchanged. Cooling expectations for US Fed interest rate cuts, intertwined with geopolitical tensions in the Middle East, will continue to weigh on copper prices. However, fundamental support for copper prices is gradually strengthening. Faster destocking and stronger downstream restocking willingness will limit downside room, and copper prices are expected to continue fluctuating near the range in the short term. LME copper is expected to fluctuate between $11,700/mt and $12,500/mt, and SHFE copper between 91,000 yuan/mt and 97,000 yuan/mt. Spot side, as downstream restocking continues and inventory is drawn down, spot premiums are expected to continue to recover, but inflows of imported cargo and suppliers selling on strength will cap upside room. Spot prices against the SHFE copper 2604 contract are expected to range from a discount of 120 yuan/mt to a premium of 20 yuan/mt.

[Weekly Operating Rates in the Aluminum Processing Industry: China's Aluminum Processing Sector Sees Modest Growth Amid Peak Season Demand] This week, the weekly operating rate of leading downstream aluminum processing enterprises in China edged up 1 percentage point WoW to 62.9%.

It was learned that the SMM weekly composite operating rate of lead-acid battery enterprises in five provinces was 73.92% from March 13 to March 19, 2026, up 0.46 percentage points WoW from the previous week. Recently, production at lead-acid battery enterprises remained relatively stable. Apart from slight production adjustments at a small number of enterprises, changes in production at other enterprises were relatively small. Over the past two years, as AI development accelerated, battery demand from data centers improved. In particular, lead-acid battery enterprises that secured tender orders had full order books, with production lines operating at full capacity. In addition, for civilian battery products, end-use consumption in the e-bike and automotive battery markets showed mediocre performance. Considering that from April to May is the traditional consumption off-season, some enterprises with average order intake only maintained operating rates at 70-80%, and needed to adjust production based on subsequent order conditions.

[Consumption Expectations Were Gradually Realized, Operating Rates of Galvanising Producers Continued to Increase]: This week, the operating rate of the galvanizing industry was 59.7, up 6.69 percentage points WoW. Raw material side, zinc prices pulled back sharply this week, galvanising enterprises actively fixed prices to stockpile, and zinc ingot inventory at galvanising enterprises increased significantly.