[SMM Analysis]Secondary Aluminum Market Remains Strong in Short Term Focus on Demand Recovery and Policy Implementation

[Zinc Ingot Inventory Continued to Rise as SHFE Zinc Extended Losses]: The most-traded SHFE zinc 2510 contract opened at 22,200 yuan/mt. In early trading, it touched a high of 22,200 yuan/mt before bears increased positions, driving prices down to a low of 22,000 yuan/mt. Subsequently, zinc prices remained in the doldrums and finally closed at 22,120 yuan/mt, down 75 yuan/mt (0.34%)...

[SMM Stainless Steel Daily Review: SS Futures Continued Weakness, Sluggish Spot Transactions] SMM, September 4 - SS futures showed a weakening pullback trend, remaining in the doldrums throughout the day and closing near 12,850 yuan/mt. On the spot market, downstream wait-and-see sentiment intensified further as SS futures weakened, resulting in sluggish inquiries and transactions. Under pressure to move inventory, traders further conceded margins, leading to lower offers. However, the overall bullish sentiment toward stainless steel this month remained largely unchanged, and with steel mills raising their listed prices, the room for concessions was relatively small. Futures side, the most-traded contract 2510 pulled back. At 10:30 am, SS2510 was quoted at 12,880 yuan/mt, down 35 yuan/mt from the previous trading day. In Wuxi, the spot premiums/discounts for 304/2B ranged between 340-640 yuan/mt. Spot market details: - Wuxi cold-rolled 201/2B coil averaged 8,100 yuan/mt. - Cold-rolled trimmed 304/2B coil averaged 13,200 yuan/mt in both Wuxi and Foshan. - Cold-rolled 316L/2B coil in Wuxi and Foshan was quoted at 25,825 yuan/mt. - Hot-rolled 316L/NO.1 coil was quoted at 25,300 yuan/mt in both regions. - Cold-rolled 430/2B coil was priced at 7,550 yuan/mt in Wuxi and Foshan. Following last week’s rebound in SS futures, the market broke through previous resistance early this week, supported by positive macro and news factors, extending gains further upward. Market confidence was thus boosted...

Iron ore futures continued to hold up well today, with the most-traded contract I2601 closing at 777 yuan, up 0.71% from the previous trading day. Traders maintained firm offers but showed moderate willingness to sell, while steel mills remained cautious in procurement with limited inquiries.

This week, overall data showed that supply-side production in both the NEV and ESS markets entered a demand growth phase by the end of August. The EV market increased upstream power battery cell production to prepare for the September-October peak season in auto sales and meet automakers' year-end stockpiling needs for sales targets. However, demand-side end-of-life battery volumes remained stable without synchronous growth alongside power battery cell production. This stability primarily resulted from previously installed power batteries still operating within normal service cycles, not yet entering large-scale retirement phases.

[SMM Chrome Daily Review: Bullish Sentiment Persists in Ferrochrome Market, Chrome Ore Inquiry and Purchase Gradually Resume] September 4, 2025: The ex-factory price of high-carbon ferrochrome in Inner Mongolia today was 8,350-8,500 yuan/mt (50% metal content), up 50 yuan/mt (50% metal content) from the previous trading day...

The separator market maintained stable supply and demand, with prices remaining steady.