This week, the weekly operating rate of leading downstream aluminum processing enterprises in China rebounded 1.1 percentage points MoM to 64%.

[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%.

[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.

According to SMM, as of February 27, 2026, the days of inventories for domestic aluminum rod plants were recorded at 12.7 days, an increase of 8.6 days from before the holiday.In the first week after the holiday, the weekly operating rate of the domestic aluminum wire and cable industry rebounded to 57%, up 4 percentage points MoM, significantly higher than the pre-holiday low of 53%.

Before and after the Chinese New Year, the domestic spot aluminum market exhibited significant regional differentiation, with the spot price spread between South China (Foshan) and East China (Wuxi) drawing particular attention. Before the holiday, the Guangdong-Shanghai price spread reached a high of 150 yuan/mt on February 10, while by February 27 after the holiday, this spread had narrowed significantly to 10 yuan/mt.....

According to SMM survey, as of February 26, social inventory of aluminum billets in mainstream domestic consumption areas reached 398,000 mt, approaching the 400,000 mt mark.

In summary, during the 2026 Chinese New Year period, the five segments of the aluminum industry chain exhibited differentiated operational trends.

Key Points: Over the next five years, China's aluminum billet market is expected to exhibit a pattern of "dual growth in supply and demand but continued surplus, optimized capacity structure, and intensified demand differentiation," as the industry shifts from scale expansion to quality improvement...

This week, the comprehensive operating rate for aluminum processing recorded 59.4%, down 1.5 percentage points WoW, overall exhibiting the characteristics of "accelerated seasonal decline and deepening high-price suppression effects.

[SMM Analysis of Downstream Aluminum Sector: PMI of Aluminum Processing Industry Declined 1.8% MoM in May - Weak Domestic Demand Across Most Sectors, with Significant Structural Differentiation] The composite PMI of the aluminum processing industry in May was recorded at 49.8%, approaching the 50 mark but still in contraction territory, down 1.8 percentage points MoM and up 8.7% YoY.