[SMM Weekly Survey of the Aluminum Downstream Sector: Downstream Aluminum Operating Rate Continued to Rebound to 61.9%, with High Prices Suppressing the Peak "Golden March" Season] This week, the weekly operating rate of leading downstream aluminum processing enterprises in China rose 2.4 percentage points MoM to 61.9%, overall extending the post-holiday recovery trend, with all segments rebounding MoM, and the industry as a whole entering a normal production pace.

This week, the ± 800 kV UHV project of Mengdian to Su (Sui Ning section) began its preliminary work. At the same time, the environmental impact assessment pre-publicity of Hexi-Zhejiang ± 800 kV UHV DC auxiliary thermal power 750 kV transmission project was announced. The project includes the expansion of the 750 kV substation in Weibao North, the 750kV transmission from Jinchang Power Plant in Gansu Province, and the 750 KV transmission from Hongshagang (Weibao) Power Plant in Gansuo Province. The total length of the newly built transmission lines is about 149.6 km, and the construction period is from June 2026 to April 2027.

[SMM Weekly Survey on Aluminum Downstream: Operating Rate of Aluminum Processing Industry Remains Flat WoW at 61.4%, Mid-Year Consumption Promotions Expected to Support Operating Rates] This week, the operating rate of leading enterprises in China's aluminum processing downstream sector remained flat WoW at 61.4%, with continued divergence across different segments.

Against the backdrop of the construction of a new-type power system, in order to effectively support the construction of large-scale wind and PV power bases in deserts, gobi deserts, and wastelands, and to facilitate and promote the intensive development and long-distance transmission of large-scale power supply bases, the construction of ultra-high voltage (UHV) projects is expected to continue advancing. The State Grid Corporation of China recently issued a tender announcement for the centralized procurement of steel towers for the 15th batch of UHV projects in 2025, with a total steel tower scale of 568,000 mt and conductor rail devices totaling 631,000 meters. The hot-dip galvanizing process, a core anti-corrosion technology for transmission steel towers, is expected to drive an increase in zinc ingot consumption, attracting significant attention within the zinc industry chain.

According to SMM statistics, the comprehensive operating rate of the domestic aluminum wire and cable industry reached 52.89% in March 2025, up 5.62% MoM from February and up 0.48% YoY from February last year, maintaining a stable performance. By enterprise size, the operating rate of large enterprises increased by 12.16% MoM to 68.91%, medium-sized enterprises rose by 1.13% MoM to 45.71%, and small enterprises improved by 2.54% MoM to 26.27%. The current rebound in operating rates is mainly attributed to the significant recovery in the operating rates of leading enterprises, with large enterprises recording an operating rate of 68.91%, up 12.16% MoM, showing a remarkable performance, while small and medium-sized enterprises are in a phase of mild recovery.

【Galvanizing Operating Rate in Q1 Slightly Weaker Than the Same Period Last Year, How Will the Market Perform in the Future?】As Q1 of 2025 is about to end, during the Chinese New Year holiday, galvanizing enterprises gradually entered the holiday and maintenance rhythm from early January. At the same time, due to the cold weather, most construction projects also gradually entered the holiday rhythm, and demand began to pull back. After the holiday, large factories resumed operations first, while small factories gradually resumed operations around the Lantern Festival. The progress of project construction resumption was slow, and demand slowly climbed. In February, infrastructure investment increased slightly YoY, with most enterprises fulfilling pre-holiday orders. The operating rate of galvanizing slowly rose, but compared to the same period last year, it was relatively weak. By March, there was no significant "Golden March" peak season as seen in previous years. Will demand improve in Q2?