Entering the second half of March, regional divergence in China’s aluminum market became increasingly pronounced, with the divergence between inventory trends and spot price spreads in east China and south China intensifying. On the one hand, the nationwide post-holiday inventory buildup in aluminum gradually approached its end, inventory overhang pressure in east China continued to ease, circulation efficiency steadily improved, the inventory buildup momentum slowed down significantly, and.....

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

[SMM Cast Aluminum Alloy Morning Comment: Cost and Demand in a Tug-of-War, ADC12 Under Short-Term Pressure] Spot side, yesterday the ADC12 market remained in the doldrums, with mainstream enterprises generally lowering quotations by 100–200 yuan/mt. Currently, demand remains weak, with insufficient order follow-through, while downstream procurement is mainly driven by rigid demand, and wait-and-see sentiment is relatively strong. Meanwhile, affected by poor orders, enterprises faced greater shipment pressure, low-priced cargo gradually increased, market competition intensified, and the price center moved downward passively. Overall, as demand has yet to show any clear improvement, ADC12 prices will remain under pressure, with weak short-term fluctuations likely to dominate.

According to SMM statistics, as of March 26, inventory of aluminum billet in China’s major consumption regions totaled 341,500 mt, down 28,000 mt WoW from last Thursday, with the destocking trend steadily accelerating.

On March 22, the 3600T large extrusion press of Gumei Metal Aluminum Plant, a key project in Dongtian Town, officially went into operation. The project has a total investment of 20 million yuan. The 3600T extrusion press is a large-scale modern production equipment with advantages of large tonnage, high precision, and high stability. It can produce profiles with a maximum pipe diameter of 350 mm, covering diverse fields such as building profiles, photovoltaic brackets, new energy, and rail transportation.

[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.

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 Aluminum Express News] Geopolitical tensions in West Asia have disrupted energy flows through the Strait of Hormuz, tightening LPG and natural gas supply to India. With gas diverted to households, according to the Aluminium Extrusion Manufacturers Association of India industrial supply has been cut by 50–80%, severely impacting energy-intensive aluminum extrusion. Around 25 plants have been shut down while ~200 operate at reduced rates, dragging monthly output from ~70,000 mt to ~45,000 mt. The supply-driven disruption is tightening downstream availability and supporting aluminum product premiums.

Hydro Extrusions Expanded Automotive Aluminum Semis Extrusion Capacity at Its Tønder Plant in Denmark According to foreign media reports, Hydro Extrusions recently officially commissioned a brand-new 12-inch, 60-meganewton extrusion press at its aluminum extrusion plant in Tønder, Denmark. The equipment had held its official inauguration ceremony in September 2025, becoming the centerpiece of the plant’s 50th anniversary celebrations. The multi-day event invited clients, suppliers, and both former and current employees to participate.