SMM Aluminium Comment: Eyes on Power Supply Situation in Yunnan and Sustainability of Downstream Demand Recovery

Published: Apr 3, 2023 09:21

Source: SMM

Save

SHANGHAI, Apr 3 (SMM) – On the macro level, the domestic manufacturing PMI data continued to improve, which strengthened market confidence.

SHANGHAI, Apr 3 (SMM) – On the macro level, the domestic manufacturing PMI data continued to improve, which strengthened market confidence. On the supply side, aluminium smelters in Sichuan and Guizhou have resumed production, but the 780,000 mt of aluminium capacity in Yunnan that was previously curtailed has not yet resumed production. On the demand side, downstream operating rates improved. Social inventory of aluminium ingots continued to drop. With little disruption to supply and demand, overseas crude oil production cuts may provide upward momentum to aluminium prices some in the short term. Factors to watch: power supply situation in Yunnan; sustainability of downstream demand recovery

Market Market

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

3 hours ago

China Aluminum Billet Supply: July Extended the Inertia-Driven Uptrend; Expectations of a Retreat from Highs in August

SMM Aluminum Billet Market: In July, the operating rate of aluminum billet rose 1.1 percentage points MoM to 58.3%, up sharply by 5.2 percentage points YoY. Benefiting from the strong performance of aluminum billet processing fees in Q2...

3 hours ago

11 hours ago

Indonesia’s 7.7-Magnitude Earthquake Had a Relatively Small Impact on the Aluminum Industry Chain, With the Shock Nearly Zero

SMM tracking feedback: The 7.7-magnitude earthquake on Flores Island, Indonesia, had a relatively small impact on the aluminum industry chain. In terms of capacity distribution, bauxite, alumina, and the vast majority of aluminum capacity are concentrated in western Indonesia, generally more than 1,400 km from the epicenter; even the closest aluminum smelter—Sulawesi Morowali Huachin Aluminum—was approximately 624 km away, still outside the 300 km damage radius. Coupled with a tsunami wave height of less than 0.4 meters, the actual supply shock was virtually zero. On the pricing front, it may at most show a short-term sentiment pulse of 0–1%, which is expected to be unwound within 1–3 days, without changing the medium-term trend.

11 hours ago

23 hours ago

Philippine DTI Plans Mandatory Certification for Aluminum Products Ensuring Quality and Safety Standards

According to Philippine media reports on the 12th, the Philippine Department of Trade and Industry (DTI) was planning to push for the establishment of a mandatory certification program for aluminum products that requires local and foreign manufacturing enterprises in the Philippines to obtain official Philippine quality and safety permits in advance and adopts a "one plant, one certificate" certification approach.

23 hours ago