[Overnight, LME Aluminum and SHFE Aluminum Edged Up Slightly, but Aluminum Prices Faced Short-Term Pressure at High Levels] Continued destocking in LME inventory provided bottom support for LME aluminum, but amid tightening fund liquidity and profit-taking by bulls, upward momentum remained insufficient, and the backwardation structure weakened somewhat. China’s social inventory rose to a high for the same period in nearly five years, and the inventory buildup cycle had yet to end, with high inventory and weak spot fundamentals jointly weighing on upward momentum. The divergence between domestic and overseas drivers continued, the SHFE/LME price ratio kept weakening, and prices were mainly under pressure in the short term.

[SMM Cast Aluminum Alloy Morning Comment: Aluminum Prices Halted Their Decline, but Wait-and-See Sentiment Remained Unchanged; Rangebound Movement May Continue in the Short Term] Spot market, yesterday the overall ADC12 market continued to hold prices steady. Aluminum prices showed signs of halting their decline, but market sentiment recovered only limitedly, and enterprises generally chose to postpone price adjustments and mainly adopt a wait-and-see stance. Demand side, downstream orders did not improve significantly, and just-in-time procurement remained the main approach, with mediocre transaction performance. Against the backdrop of easing cost-side fluctuations and insufficient demand support, ADC12 prices may continue to fluctuate within a range and remain relatively stable in the short term, with relatively limited momentum for price adjustments. Further attention should still be paid to aluminum price trends and the recovery of end-use demand.

SMM News, March 24: Aluminum ingot: On March 24, SMM A00 aluminum (Foshan) was reported at 23,440, up 30, at a discount of 170 against the current-month contract, narrowing by 5 (unit: yuan/mt) The SHFE aluminum 04 contract generally stabilized today. Supported by aluminum prices halting their decline and edging up slightly, the South China spot market stabilized and improved, and buyers generally showed good purchasing sentiment today. Spot prices were significantly below the monthly average price, and sellers firmly held prices firm. However, amid weekend inventory buildup and ample circulating cargo, overall support for firm prices was clearly constrained under high inventory pressure. Mainstream transaction prices in the market today were concentrated at premiums of -175 yuan/mt to -165 yuan/mt against the SHFE aluminum 04 contract.

SMM, March 24: SHFE aluminum 2604 fluctuated downward in early trading, slightly higher than the previous trading day. Overall market buying sentiment was relatively good, and sellers held prices firm as aluminum prices remained at relatively low levels. Today’s mainstream transaction prices were concentrated at SHFE aluminum 04 contract +10 yuan/mt. Today, the east China market shipments sentiment index was 2.79, up 0.07 MoM; the purchasing sentiment index was 3.34, up 0.04 MoM. As aluminum prices extended their decline, traders in the central China market showed weak purchase sentiment. With the month-end settlement date approaching, suppliers made heavy shipments and showed limited willingness to hold prices firm. Downstream processing enterprises were wary of further price declines, with no expectation of large-scale stockpiling at low prices for now. Overall market purchase activity was sluggish, and prices showed a continued price collapse trend. Ultimately, actual transaction prices in the central China market were concentrated in the range from a premium of 20 yuan over the central China price to a discount of 20 yuan to the central China price. Today, the central China market shipments sentiment index was 2.63, flat MoM; the purchasing sentiment index was 2.4, down 0.08 MoM. Inventory side, aluminum ingot inventory in major consumption areas increased by 6,500 mt MoM today, with destocking mainly coming from Gongyi and Guangdong. In the short term, after the Chinese New Year, aluminum ingot inventory continued to see seasonal inventory buildup. Affected by bullish sentiment, premiums are expected to remain on a narrowing trend.

[SMM Silicon-Based PV Morning Meeting Summary] Silicon Metal: Spot silicon metal prices remained in a stalemate consolidation. Yesterday, SMM east China oxygen-blown #553 silicon was at 9,100-9,300 yuan/mt, and #441 silicon at 9,300-9,500 yuan/mt, unchanged from the previous day. The quote center of some silicon enterprises was slightly lower than that of trading firms engaging in both spot and futures market, while downstream users mainly transacted at lower prices, and overall market trading activity was subdued. Polysilicon: N-type recharging polysilicon was quoted at 38-47 yuan/kg. Polysilicon prices continued to decline somewhat recently, mainly affected by market sentiment and inventory clearance by some leading enterprises. At present, low-priced polysilicon has already fallen below the cost line of some manufacturers, and the sentiment to hold quotes firm has strengthened somewhat. The upstream market was also still watching wafer price movements.

Strait of Hormuz disruptions and Iran tensions are driving up aluminum prices and premiums. Aluminium Bahrain and Qatalum have cut output, while feedstock is tight. Rerouting via Port of Sohar or Saudi ports raises costs and delays. Buyers are turning to China, India, Russia, Canada, and scrap to offset risk. Prolonged disruption could reduce Middle East market share and reprice it as higher-risk supply.

[SMM Midday Tin Commentary: Improving Macro Sentiment Drove a Rebound in Tin Prices, While Follow-Through in Spot Transactions Remained Limited]

[SMM Morning Zinc Briefing: Stronger US Dollar Index Put LME Zinc Under Pressure and Slightly Lower]: Overnight, LME zinc opened at $3,095/mt. After the opening, LME zinc fluctuated downward along the daily average line, hitting an intraday high of $3,097/mt. Near the close, LME zinc fell to a low of $3,027/mt, and finally closed down at $3,038.5/mt, down $64.5/mt, a decline of 2.08%, while trading volume decreased to 11,298 lots...

Spot prices of #1 copper cathode in North China against the front-month contract were reported at a discount of 110 yuan/mt to a discount of 50 yuan/mt today, unchanged from the previous trading day, while the average transaction price rose 1,635 yuan/mt from the previous trading day to 95,595 yuan/mt.

On March 25, the SMM average price of battery-grade nickel sulphate remained stable.