[SMM Aluminum Downstream Analysis: Post-Holiday Aluminum Processing Industry Recovers as Expected, February PMI Returns to Expansion Territory]
In February, the center of aluminum prices continued to rise. After the holiday, driven by heightened macro sentiment, SHFE aluminum showed strong upward momentum, surging past the 21,000 mark and maintaining a high-level consolidation, poised for further action. On the fundamentals side, most downstream aluminum processing sectors resumed operations as expected after the holiday. The realization of new orders helped processing enterprises improve production efficiency and purchase pace, with the industrial extrusion sector performing particularly well. The new energy industry continued to drive incremental aluminum consumption. Considering the arrival of the traditional peak consumption season in March and April, along with market expectations for the Two Sessions, March is expected to see sustained growth in industry orders and improved production efficiency among downstream manufacturers. SMM anticipates that the domestic aluminum processing industry PMI in March will remain above the 50 mark.
![Accelerated destocking of aluminum ingots during the peak season supports aluminum prices to hold up well in the short term [SMM Aluminum Morning Meeting Summary]](https://imgqn.smm.cn/usercenter/zjiqN20251217171650.jpg)
