[SMM Analysis]Aluminum Processing PMI Rebounded Sharply to 66 in March, Expected to Pull Back in April

As semiconductor demand surged, JX Advanced Metals Corporation, Japan’s semiconductor materials giant (JX Advanced Metals Corp., hereinafter referred to as JX Advanced Metals), plans to increase investment in chip and information technology materials. President Yoichi Hayashi said the company plans to invest about 100 billion yen ($623 million) annually across all business divisions, with a focus on chip-related businesses. Over the past three years, the company invested an average of 90 billion yen per year. JX Advanced Metals is one of the beneficiaries of the rapid buildout of AI data centers, and its clients include global chipmakers such as TSMC, SK Hynix, and Intel. This has prompted the company to shift from its traditional copper smelting business to chip and information technology materials. In an interview, Hayashi said, “I do not think we should blindly expand investment, but it would be a serious mistake to hesitate when there are clear opportunities. I believe now is the time for us to take certain risks.” As demand exceeded expectations, JX Advanced Metals raised its operating profit forecast for the fiscal year ending March 31 by 20. Sales of indium phosphide, a semiconductor material produced by the company, were strong, and the company said it will make additional investment to expand capacity. Hayashi said that, given tight supply and demand, the company was negotiating with clients to raise product prices. He added that the magnitude of the price increases varied by product, but did not disclose specific details. He believes the war in the Middle East will not have a significant impact on the company’s operations, but is monitoring developments closely. JX aims to achieve operating profit of 200 billion yen in growth segments, including its chip materials business, by the fiscal year ending March 2040. Operating profit for the most recent fiscal year was about 52 billion yen. (Wenhua Composite)

In March, European APT prices surged 30%, driven by persistent supply shortages, widening the price gap with China to over $400/mtu. Tungsten scrap markets saw panic selling mid-month but stabilized toward month-end. China entered a consolidation phase as mining quota were released, yet strong fundamentals point to renewed upside ahead.

India’s steel market in 2026 is expected to remain balanced, with demand slightly outpacing supply. Domestic consumption will absorb most output, while imports decline overall and exports increase modestly as a balancing mechanism. Supported by strong growth and infrastructure investment, India is transitioning toward a demand-led steel market with solid long-term potential.

SMM News, March 30: Data Brief: As of Monday, March 30, SMM copper inventories in major regions nationwide fell 13.81% WoW from last Monday, with all regions continuing destocking. Specifically, in Shanghai, arrivals of imported and domestic cargo were normal, downstream consumption continued to recover, and inventory declined steadily; in Jiangsu, downstream consumption also improved, but the destocking pace slowed somewhat as copper prices rose again; in Guangdong, downstream consumption remained robust, and coupled with tight supply, spot inventory continued to decline. Outlook: imported cargo continued to arrive, while arrivals of domestic cargo slowed somewhat, leaving overall supply tight; on the demand side, downstream buyers mainly made just-in-time procurement, and overall consumption slowed slightly from the previous period. According to survey data, the weekly operating rate of copper cathode rod is expected to rise to 83.76% this week, up 0.59 percentage points WoW. Considering both supply and demand, the market has now formed a pattern of “stabilizing supply and temporary stabilization in consumption,” and social inventory is expected to continue declining this week.

[Multiple Bearish Factors Stall the Uptrend; China’s Tantalum Market Undergoes Short-Term Adjustment While Medium and Long-Term Support Remains Solid] Recently, the sustained upward momentum in China’s tantalum products market came to a halt, with the overall market entering a phase of temporary consolidation and adjustment. Upward momentum slowed markedly in the short term, mainly due to three core factors: the transmission of macro sentiment, changes in circulating supply, and weakening raw material costs.