South Korean President Lee Jae Myung arrived in China on January 4 after taking office, commencing his first official visit.

[SMM Aluminum Morning Meeting Minutes: Strong Macro Sentiment Boosts Aluminum Prices to Continue Rising] Overall, despite the reality of pressured fundamental consumption and continuously accumulating inventory, which imposes some restraint on the sustained rise in aluminum prices, strong macro policy expectations and geopolitical risk disruptions provide solid support for the upward movement of aluminum prices. SMM expects aluminum prices to hold up well in the short term.

[SMM Cast Aluminum Alloy Morning Comment: Aluminum Prices Hit New Highs in Recent Years, Downstream Production Cuts Considered] On Tuesday, aluminum prices once again reached new highs in recent years, with the SMM A00 aluminum price surging by 600 yuan/mt in a single day to 23,910 yuan/mt, bringing the cumulative increase over the past two days to 1,450 yuan. This has driven up the cost of recycled aluminum raw materials continuously, and the SMM ADC12 price followed with an increase of 400 yuan/mt to 23,500 yuan/mt. However, in the face of the sharp jump in raw material prices, downstream demand remains weak. Die-casting enterprises, squeezed by both reduced orders and high raw material costs, are purchasing cautiously with strong risk aversion sentiment. Inquiries are frequent, but market transactions are scarce. Some downstream players, unable to pass on the sudden cost increases, are considering production cuts or even shutdowns to alleviate operational pressure. Overall, the current secondary aluminum market is influenced by a mix of bullish and bearish factors: cost-driven and tight supply conditions provide support for prices, while weak downstream demand and fear of high prices exert downward pressure. Nevertheless, the continued release of macro tailwinds in the short term will provide a boost to the market, and ADC12 prices are expected to continue fluctuating at highs.

[SMM Aluminum Morning Meeting Minutes: SHFE Aluminum Rises Over 2% in Night Session, Breaking Through 24,100 yuan/mt, Multiple Positive Factors Support Aluminum Prices to Hold Up Well in the Short Term] Overall, despite the reality of pressured fundamental consumption and continuously accumulating inventory, which has imposed some restraint on the sustained rise in aluminum prices, strong macro policy expectations and geopolitical risks have provided solid support for the upward movement of aluminum prices. SMM expects aluminum prices to hold up well in the short term.

[SMM Cast Aluminum Alloy Morning Comment: Copper and Aluminum Prices Continue Strong Trend, Demand Remains Weak] In the spot market, aluminum and copper prices continued their strong performance yesterday, again hitting new multi-year highs. Among them, the SMM A00 aluminum price surged 850 yuan/mt to 23,310 yuan/mt, driving up the cost of recycled aluminum raw materials, while the SMM ADC12 price followed with an increase of 650 yuan/mt to 23,100 yuan/mt. Post-holiday market activity has resumed, but downstream demand remains weak in the face of sharp raw material price hikes. Die-casting enterprises, squeezed by both reduced orders and high raw material costs, have adopted a cautious purchasing approach, with strong risk aversion and a focus on restocking for immediate needs, leading to sluggish trading sentiment. Overall, although the recycled aluminum market is supported by costs and supply, weak downstream demand coupled with market fear of high prices will suppress further price increases. In the short term, ADC12 prices are expected to fluctuate at highs.