SMM Aluminum Futures Review: Boosted Consumption Drives SHFE Aluminum to Fluctuate at High Levels

[SMM Aluminum Futures Brief Review: Boosted Consumption, SHFE Aluminum Fluctuates at Highs]

Demand side, the operating rate of leading aluminum processing enterprises rose 5.7 percentage points WoW to 56.8% this week. Although it is currently the off-season, the operating rates of aluminum plate/sheet, strip and foil, secondary alloy, and extrusion enterprises all increased, especially with top-tier automotive extrusion enterprises accelerating their resumption of production, providing support for demand. Meanwhile, due to financial constraints and limited orders on hand before the holiday, extrusion enterprises stockpiled relatively less, which may lead to some stockpiling sentiment after the holiday. With the end of the Chinese New Year holiday, aluminum processing enterprises have gradually resumed work and production, and consumption is expected to recover progressively. In the near term, attention should focus on the impact of tariff events, post-holiday aluminum ingot inventory changes, and the pace of downstream resumption. SHFE aluminum is expected to continue fluctuating at highs in the short term.