[SMM Aluminum Morning Meeting Summary: The SHFE/LME Price Ratio Continued to Weaken, and Aluminum Prices Were Expected to Fluctuate at Highs in the Short Term] Against the backdrop of continued tightening LME liquidity, LME aluminum still had upward momentum, with strong support from overseas prices, and the backwardation structure was expected to persist in the short term. China was in a phase of high inventory + weak fundamentals, and its upward momentum was clearly weaker than that outside China. Amid diverging domestic and external drivers, the SHFE/LME price ratio was expected to continue weakening, and aluminum prices were expected to continue fluctuating at highs in the short term.

[SMM Flash News] Aluminum Fundamentals This Week SMM, March 12: Fundamentals: Downstream producers gradually resumed operations after the holiday, and demand for liquid aluminum continued to recover. As of this Thursday, the weekly proportion of liquid aluminum rebounded by about 1.2 percentage points WoW, end-use demand steadily repaired, and downstream operating rates increased further. Driven by the PV installation rush, operating performance remained strong; construction recovered slowly after the holiday, and extrusion operating rates rose WoW; boosted by auto and packaging orders, aluminum plate/sheet, strip and foil operating rates also rebounded this week.

[SMM Aluminum Price Weekly Review: Geopolitical Disruptions Dominate, Aluminum Prices Remain Elevated]

[SMM Analysis: Multiple Factors Weigh Down Aluminum Plate/Sheet, Strip and Foil Operating Rates] Entering January, domestic market demand continued to weaken, with some enterprises adjusting production plans based on orders on hand. Coupled with the approaching Chinese New Year holiday and the gradual tightening of logistics resources, shipments consequently decreased.

[SMM Analysis: Multiple Factors Weigh on Aluminum Plate/Sheet, Strip and Foil Operating Rates, Leading to Continued Decline] Entering January, domestic market demand has continued to weaken. Some enterprises have adjusted their production plans based on orders on hand. Coupled with the approaching Chinese New Year holiday and the gradual tightening of logistics resources, shipments have subsequently decreased.